Philippines
Philippines
Philippines
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Workshop on Increasing LNG Trade in the APEC Region:<br />
Information Exchange on LNG Public Education Campaigns<br />
The Philippine Experience<br />
Jesus T. Tamang<br />
Chief, Natural Gas Office<br />
Department of Energy<br />
<strong>Philippines</strong><br />
Guangzhou, China<br />
5-7 November 2007
Talking Points<br />
• Overview of the Natural Gas Industry<br />
• Natural Gas Outlook<br />
• Identified LNG Projects<br />
• Contributions of LNG<br />
• Acceptability of LNG<br />
• IEC Programs and Activities<br />
• Issues and Concerns
Overview of the Natural Gas Industry<br />
Indigenous Gas Fields<br />
San Antonio Gas Field<br />
2.7 BCF (1994)<br />
Malampaya Gas Field<br />
2.7 TCF (2001)<br />
Libertad Gas Field<br />
3 BCF (2006)
Overview of the Natural Gas Industry<br />
Geothermal<br />
8%<br />
Natural Gas<br />
0%<br />
Hydro<br />
5%<br />
Primary Energy Mix<br />
2000 2006<br />
Geothermal<br />
23%<br />
Natural Gas<br />
6%<br />
Hydro<br />
6%<br />
Biomass<br />
30%<br />
Biomass<br />
16%<br />
Oil<br />
46%<br />
Coal<br />
13%<br />
Coal<br />
11%<br />
Total: 251.73 MMBFOE<br />
Self-sufficiency Level = 45.4%<br />
Oil<br />
36%<br />
Total: 272.88 MMBFOE<br />
Self-sufficiency level = 55.8%
Overview of the Natural Gas Industry<br />
Power Generation Mix in 2006<br />
<strong>Philippines</strong><br />
Luzon<br />
Oil<br />
7%<br />
Geothermal<br />
19%<br />
Natural Gas<br />
30%<br />
Geothermal<br />
11%<br />
Oil<br />
2%<br />
Natural Gas<br />
40%<br />
Coal<br />
34%<br />
Coal<br />
27%<br />
Hydro<br />
17%<br />
Hydro<br />
13%<br />
56,306,783 MWh 41,315,706 MWh
Overview of the Natural Gas Industry<br />
Natural Gas will continue to penetrate the country’s<br />
power capacity mix (in MW)<br />
18000<br />
16000<br />
14000<br />
12%<br />
12000<br />
Geothermal<br />
26%<br />
10000<br />
8000<br />
11.6%<br />
6%<br />
Coal<br />
Natural Gas<br />
2700 MW<br />
18%<br />
6000<br />
4000<br />
58%<br />
Oil<br />
23%<br />
2000<br />
25%<br />
Hydropower<br />
21%<br />
0<br />
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006<br />
Source: PEP 2006 Update
Overview of the Natural Gas Industry<br />
Current users of natural gas<br />
Metro Manila<br />
560 MW San Lorenzo<br />
First Gen/ IPP<br />
Batangas City<br />
1,000 MW Sta. Rita<br />
First Gen/ IPP<br />
Pilipinas Shell Refinery<br />
1,200 MW Ilijan Power Plant<br />
NPC IPP(KEPCO)
Natural Gas Outlook<br />
Natural gas is the strategic fuel of the future for the <strong>Philippines</strong><br />
Natural gas … will provide for the structural<br />
change in the country’s energy mix and<br />
strengthen our fuel diversification program. It<br />
will also add to our energy security position<br />
and sustainable development as we move<br />
away from oil.<br />
As a fuel of the future, natural gas will lead to<br />
the development of the natural gas industry in<br />
the country with attendant transfer of<br />
technology, job creation and pouring in of<br />
local and foreign investments in the country.<br />
Natural Gas is the Way to Go – The Fuel of the Future<br />
for the <strong>Philippines</strong>. Manila Hotel, 6 August 2007<br />
Hon. Angelo T. Reyes<br />
Secretary<br />
Department of Energy
Natural Gas Outlook<br />
To increase the utilization of<br />
natural gas, the <strong>Philippines</strong> is<br />
vigorously promoting its use in the<br />
transportation, commercial, and<br />
residential sectors, and is<br />
developing critical infrastructures<br />
that will efficiently deliver gas to<br />
the demand centers. In addition,<br />
we are intensifying exploration for<br />
indigenous gas deposits and<br />
studying options for economically<br />
using imported LNG. We of course<br />
continue to encourage the private<br />
sector to assist government in<br />
developing the natural gas<br />
industry.<br />
POLICY STATEMENT By Secretary Angelo T.<br />
Reyes. AMEM25 Theme: Energizing ASEAN to<br />
Power a Dynamic Asia
300<br />
Natural Gas Outlook<br />
Supply-Demand Outlook by Source, In BCF, 2007- 2014<br />
250<br />
200<br />
150<br />
Malampaya Capacity<br />
Other Sources<br />
New Sources<br />
100<br />
50<br />
Existing Sources<br />
Indigenous<br />
0<br />
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Natural Gas Outlook<br />
Identified<br />
Critical<br />
Infrastructure<br />
1<br />
BATMAN 2<br />
(140 kms. . Bataan- Manila)<br />
Proposed CNG<br />
Mother and<br />
Daughter Stations<br />
1. Clark<br />
2. Rosario, Cavite<br />
3. Biñan<br />
an, , Laguna<br />
(PSPC)<br />
4. Tabangao,<br />
Batangas (SPEX)<br />
A minimum of 9<br />
Daughter Stations<br />
are required in<br />
Metro Manila<br />
between 2006-2014.<br />
2014.<br />
Proposed Sites<br />
for Daughter<br />
Station<br />
Proposed Site<br />
for CNG Mother<br />
Station<br />
Malampaya Pipeline<br />
2<br />
San Lorenzo<br />
Sta. Rita<br />
3<br />
4<br />
Ilijan<br />
ET LOOP<br />
(40 kms. . EDSA – Taft Loop)<br />
SU-MA<br />
(35 kms. . Sucat – Malaya<br />
Pililia)<br />
BATCAVE<br />
(40 kms Bataan – Cavite)<br />
RO-BIN<br />
(35 kms. . Rosario - Biñan<br />
an)<br />
BATMAN 1<br />
(80-100<br />
kms. . (Batangas<br />
Manila)<br />
CATLINE (30 kms. Calaca<br />
Spurline)
Identified LNG Projects<br />
Strategic<br />
Infrastructure in<br />
Luzon<br />
Proposed<br />
LNG Terminals<br />
Proposed<br />
Sites for LNG<br />
Terminal<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Proposed<br />
LNG<br />
Terminal<br />
1. Limay (PNOC)<br />
2. Mariveles<br />
(GNPower)<br />
3. Calaca (JGC)<br />
4. Batangas (First Gas)<br />
5. Pagbilao (EWI)<br />
Malampaya
Contributions of LNG<br />
• Stable and secure energy supply<br />
• Encourage dispersal of industry<br />
development<br />
• Clean and efficient fuel<br />
• Carbon credits improve project economics<br />
• Climate change abatement<br />
• Job creation
Acceptability of LNG Projects<br />
The GNPower<br />
Project Profile<br />
• 1200 MW LNG-fired Power Plant,<br />
60% efficiency<br />
– 4 LNG combustion turbines, 4<br />
heat recovery steam generators, 2<br />
steam turbines<br />
• High Voltage Direct Current<br />
(HVDC) submarine cable thru<br />
Manila Bay<br />
• 2 X 140,000 cubic meter LNG<br />
tanks<br />
• 250-meter Jetty<br />
• Project site is 45-Hectare coastal<br />
area in Barangay Alas-asin,<br />
Mariveles, Bataan
Acceptability of LNG Projects<br />
The GNPower Experience<br />
• After a 3-year process, was issued Environmental<br />
Compliance Certificate by DENR in 2001<br />
– Conduct of Environmental Impact Statement (EIS) provided an<br />
opportunity for stakeholders, interested parties and government<br />
to evaluate proposal and its implications<br />
– EIS provided information on existing environment, potential<br />
major environmental impacts, public concerns and issues,<br />
mitigating measures and commitment of the proponents, residual<br />
environmental impacts and project-related positive impacts<br />
• Had offtake agreements with large industrial, commercial,<br />
distribution utilities and electric cooperatives
Acceptability of LNG Projects<br />
The GNPower Experience<br />
• Conducted formal scoping process<br />
– Introduced project to host community<br />
– Promote transparency to maintain good<br />
relationship with the community<br />
– Encouraged public participation<br />
– Identified Issues and concerns of<br />
stakeholders
Acceptability of LNG Projects<br />
The GNPower Experience<br />
• Identified Issues and concerns of<br />
stakeholders<br />
– Impact of dynamite fishing on cables and jetty<br />
– Discharge of heated water and effluent<br />
– Priority of local residents in hiring work forces<br />
– Provision of alternative livelihood<br />
opportunities<br />
– Lower electricity price in the area
Acceptability of LNG Projects<br />
The GNPower Experience<br />
• Social acceptability manifested thru local<br />
endorsements, local resolutions and result of<br />
perception survey (80%)<br />
• Information dissemination, project dissemination<br />
and seeking local government endorsement had<br />
15 sessions<br />
• Prime reason for project acceptance is provision<br />
of jobs to locals, additional business<br />
opportunities to the community, huge taxes and<br />
revenues from the project
IEC Programs & Activities<br />
• Develop and issue public<br />
information materials<br />
including FAQ on natural gas<br />
and LNG for various<br />
stakeholders e.g. investors,<br />
consumers, general public,<br />
etc<br />
• Capacity Building - Establish<br />
a Multi-partite Philippine<br />
Natural Gas Institute e.g.<br />
Government, Academe,<br />
Industry
IEC Programs & Activities<br />
• Advocate passage of Natural Gas Bill –<br />
institutionalize the development of the natural<br />
gas industry development program, codes and<br />
practices (safety, protocols, competition, etc.)<br />
• Conduct Focus Group Discussions /<br />
Consultations at various levels e.g. sector<br />
stakeholders, government agencies, legislators,<br />
potential host communities of industry facilities
IEC Programs & Activities<br />
Recognition of notable performance in plant safety and operation
Issues and Concerns<br />
Strength and<br />
protection<br />
against natural<br />
calamities e.g.<br />
typhoon,<br />
earthquakes,<br />
tsunamis, etc.
Issues and Concerns<br />
Safety and security<br />
from man-made<br />
calamities<br />
Glorietta 2 probe not<br />
over even as foreign<br />
experts say it's gas<br />
blast<br />
10/31/2007 | 12:41<br />
PM (GMA News)<br />
Probers doubt bomb theory<br />
Monday, October 22, 2007<br />
They pointed out the possibility that fumes may have leaked from a huge<br />
diesel fuel container, or methane gas from a septic tank, and ignited in the<br />
tightly enclosed concrete basement. (The Philippine Star)
Issues and Concerns<br />
A possible repeat<br />
of 911 incident<br />
Source - www.america911.com/
Issues and Concerns<br />
Source: www. google.com<br />
Impact to Environment
Issues and Concerns<br />
Need for<br />
appropriate<br />
information<br />
Address NIMBY<br />
mentality
LNG for a Sustainable Future<br />
Source: www.pinktentacle.com/
Workshop on Increasing LNG Trade in the APEC Region:<br />
Information Exchange on LNG Public Education Campaigns<br />
The Philippine Experience<br />
Jesus T. Tamang<br />
Chief, Natural Gas Office<br />
Department of Energy<br />
<strong>Philippines</strong><br />
Guangzhou, China<br />
5-7 November 2007
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