DOE welcomes the ongoing completion of natural gas projects in Luzon
Power Energy

DOE welcomes the ongoing completion of natural gas projects in Luzon

Nov 24, 2022, 7:11 AM
Kaithe Santos

Kaithe Santos


The Department of Energy (DOE) is delighted that natural gas projects in Luzon are still being finished. This additional power source has an effect as Luzon struggles with a lack of power supply.

To stabilize the supply of electricity in 2023, the Department of Energy (DOE) welcomed the ongoing completion of natural gas projects in Luzon.

Energy Secretary Raphael P.M. Lotilla mentioned that "there is a need to diversify our power sources, including the use of liquefied natural gas."

“Given its scheduled availability at the end of the first quarter of 2023, liquefied natural gas (LNG) is considered an important source for fuel diversification,” he added.

This will complement ongoing efforts of the Malampaya Consortium to optimize sustainably the remaining indigenous gas in the Malampaya-Camago reservoir, Business Mirror reported.

Lotilla said that liquefied natural gas also contributes to stabilizing the power supply from renewable energy sources.

Linseed Field Power Corporation (Corp.), a partnership between San Miguel Corporation (SMC) and Atlantic Gulf & Pacific Company (AG&P), is on schedule to finish its first integrated LNG import terminal in Barangay Ilijan in Batangas City, based on the progress reports provided by the LNG project proponents to the DOE's Oil Industry Management Bureau.

For the 1,200 megawatts (MW), Ilijan combined cycle power plant, commissioning is planned for March 2023, and commercial operation for April 2023, just in time for SMC's LNG supply to arrive. As Luzon deals with a lack of power supply, this additional power source has an impact.

Meanwhile, First Gen (FGEN) LNG Corp., a subsidiary of First Gen Corporation, with BW LNG providing LNG storage and regasification services, is also scheduled for the commissioning of its LNG terminal in March 2023, while the commercial operation is set in June 2023, in line with the arrival of LNG supply to fuel its existing gas-fired power plants such as the 1000 MW Sta Rita Power Plant, 500 MW San Lorenzo Power Plant, 414 San Gabriel Power Plant and the 97 MW Avion Power Plant.

“Our foremost concern is to ensure that there is enough capacity supplied through various sources most especially in the coming summer months to sustain the power supply in the country”, Lotilla said.

In addition, stranded power from coal-fired power plants in Bataan is included in the additional supply due to transmission constraints.

Further, natural gas will be able to support intermittent renewable energy sources due to its ability to provide flexible capacity.

This flexibility allows LNG plants to serve not only peaking requirements to support renewables and ancillary power but can likewise provide mid-merit and base load requirements.

The DOE has already finished its downstream natural gas development plan and established the regulatory framework needed to direct stakeholders and policymakers on the entry of LNG into the country.

In line with this, the DOE, in its iteration of the Philippine Energy Plan (PEP), presented a roadmap for a Clean Energy Scenario, which supports the United Nation’s Sustainable Development Goals.

Under the Clean Energy Scenario, the government aims to transition to a cleaner energy and low-carbon future. which considers increasing the contribution of natural gas power generation as a transition fuel through the establishment of LNG receiving terminals and regasification facilities

Tags: #DOE, #powersupply, #LiquefiedNaturalGas

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