PH expected to raise LNG imports

Decreasing output from the Malampaya gas field in offshore Palawan and insufficient offshore exploration will prompt the Philippines to increase liquefied natural gas (LNG) imports to meet demand, according to a study by Fitch-owned BMI Research.

“The pressure continues to mount for the Philippines to secure additional oil and gas sources, as output from” the Malampaya field “continues to fall,” BMI Research said.

“Limited exploration offshore, coupled with an improving LNG supply outlook, have compelled Manila to look toward LNG imports to replace Malampaya’s declining output,” it added.

As the field is expected to be depleted by 2024, the study expects the country to reduce its gas production at an annual average rate of 19 percent.

The Malampaya Deepwater-Gas-to-Power facility accounts for almost 98 percent of the country’s gas. The 2,700-megawatt plant supplies 30 percent of Luzon’s electricity needs.

Despite field’s expected depletion, Shell Country Manager Cesar Romero had said it could still supply gas for the next decade.

“Based on current rates, [and depending]on the drawdown, there could be supply until 2027 to 2029,” Romero said last December.

“It does not mean that by 2024, it is finished and it is zero,” he added.

Shell Philippines Exploration B.V. owns 45 percent of the facility, while Chevron Malampaya LLC and government-owned PNOC (Philippine National Oil Co.) Exploration Corp. hold 45 percent and 10 percent, respectively.

Even if Malampaya continues to supply gas beyond 2024, Energy Secretary Alfonso Cusi had said the government would still push through in building an LNG facility to ensure energy security.


Lagareon, J. S. (March 7, 2018). PH expected to raise LNG imports. The Manila Times. Retrieved from

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