State promotion of natural gas sector tops priorities

THE Philippines needs significant investments in the short term to bring its natural gas resources to the retail market.

During the government’s Mid-Year Economic Briefing on Wednesday, Energy Secretary Angelo Reyes said that developing the downstream natural gas industry is one of the government’s top priority as this would help diversify its energy sources.

”Our policy to diversify energy sources creates various potentials for investments, which include putting up of critical infrastructure to bring the energy to various end-users,” he said.

Considered as the cleanest fossil fuel around, natural gas may be used in a number of industries from power generation, manufacturing and transportation. With the country believed to possess significant offshore reserves of natural gas, experts see it playing a significant role in this market.

Reyes said the government is prioritizing a pipeline project that will bring gas from the Malampaya, the country’s largest natural gas field, to different economic zones and the transport sector in Luzon.

The project would entail laying down 423 kilometers of transmission pipeline and 504 square kilometers of distribution pipeline.

This network of pipelines will run from Batangas to Manila (Batman 1), Bataan to Manila (Batman 2), Calaca spurline (Catline), Rosario-Biñan (Ro-bin), Batangas-Cavite (Bat-Cave), Sucat-Malaya (Su-Ma) and the Edsa-Taft Loop (ET Loop).

Reyes also said that investments are needed for 10,000 units of compressed natural gas vehicles, refilling stations, mother stations and conversion kits to spur the development of the natural gas industry for the transport sector.

This will not only be for the conversion of buses plying Luzon’s main thoroughfares but also other public transport systems such as tricycles, jeepneys and taxis.

All told, the country would need $5-billion worth of investments in the next six years to develop the downstream natural gas industry.

”We will pursue government-private sector partnership in the development of strategic energy strategic infrastructures for natural gas,” the Energy secretary said. –Euan Paulo C. Añonuevo, Manila Times