On 17 May 2024, the Gas Policy Development Project – Phase 3 (GPDP 3) hosted its first online lecture entitled ‘The Economic Impact of LNG Importation in the Philippines.’ Over 50 participants from academic institutions as well as government agencies and private organizations joined via Zoom. The event featured distinguished energy experts Dr. Rose Mendoza, Chief Investments Specialist of the Resource-Based Industries Service – Energy Division at the Board of Investments (BOI), and Dr. Ramon Clarete, former Project Director of GPDP 1 and former Dean of the UP School of Economics. The discussion delved into the implications of Liquefied Natural Gas (LNG) importation as the country prepares to shift from indigenous natural gas sources to imports.

“In the short term, the Philippines has no sufficient supply from Malampaya, and the next best scenario is to import. There is an adequate global supply of natural gas. Luzon might initially only require 5 million tons per annum (MTPA) of LNG for the existing 3,200 megawatts Gas-fired power plant,” said Dr. Mendoza.

Dr. Ramon Clarete shared his views on Dr. Mendoza’s presentation through a written comment, which were presented during the lecture. In his insights, Dr. Clarete pointed out the critical timeline, noting that the country is approximately three years behind in establishing Floating Storage and Regasification Units (FSRUs) essential for importing LNG. He emphasized the urgency of addressing these delays to avoid a severe energy crisis similar to the 1990s, questioning the reasons for the slow progress, particularly when viable, cleaner energy options like LNG are available but underutilized. Dr. Mendoza responded by reassuring that there is no need to panic, as the government has been actively working on it.

Following this exchange of insights, the participants enthusiastically engaged with the speaker during the Q&A session.

The online lecture is part of GPDP 3’s capacity-building initiatives devised to address the country’s lack of natural gas experts. Through lectures and elective courses, GPDP 3 seeks to spark interest among students and cultivate a pool of energy experts that the government can rely on in the future. Recently, GPDP 3 facilitated the inclusion of an elective course at the University of the Philippines Diliman – College of Engineering as an initial step in achieving this objective.

To view the online lecture and access the lecture materials, click here.