MANILA, Philippines – Pilipinas Shell Petroleum Corp. (Shell) is urging the Aquino administration to come up with policies that would encourage investments in the liquefied natural gas (LNG) sector.
Shell country chairman Edgar Chua said the government must come up with a clear energy mix that includes the contribution of LNG, along with our sources of power.
LNG is natural gas that has been convered into liquid for ease of storage or transport.
“To make LNG a reality, there is a need for the government to come up with policies to encourage investments along the LNG value chain.
Firstly, a clear energy mix which spells out the contribution of LNG, coal, renewables and oil to the country’s power generation,” Chua said.
Last week, Energy Secretary Carlos Jericho Petilla said the Energy department is coming out a fuel mix policy this year because there is none. The mix would serve as guide to future investments in power and provide these potential investors a clear signal on the government’s fuel mix policy.
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Chua said a clear fuel mix policy would ensure that as demand grows, each energy source grows proportionately and the balance of cost environment and health considerations is also maintained.
He also urged the government to encourage the development of LNG infrastructure in the country.
“The government should support and encourage the development of an LNG infrastructure such as import terminal and gas pipelines to allow more customers access to natural gas,” he said.
Related to this, he said the government must also enforce air emission regulations in the power sector to ensure the best available technology are chosen such that power demand is met in a sustainable way without detriment to the air quality.
This, he said, ensures a firm foundation for a livable society.
“Climate change is very real as we have all seen with Super Typhoon Yolanda,” Chua said.
He said Shell is working with the Department of Energy to come up with solutions to address the increasing demand for power with the end view of balancing growth and competitiveness, health and environmental sustainability and energy security.
“One solution we see is in increasing the supply of natural gas, the cleanest-burning fossil fuel, to help the Philippines meet its growing energy requirements with less cost and less impact on the environment.
One of the major advantages of LNG-fired power lies in the lower upfront capital cost and shorter build time of the ultra-efficient
combined cycle gas turbine power plants,” he said.
Shell earlier expressed plans to build an LNG regasification terminal beside its refinery in Batangas with an estimated cost of $1 billion.
