The Phillipines Department of Energy (DOE) signed a memorandum of understanding (MoU) with German firm MAN Energy Solutions (MAN ES) on 22 February, to help develop the country’s downstream natural gas industry
Energy Secretary Alfonso Cusi signed the MoU on behalf of the DOE, while MAN ES chief sales officer Wayne Jones signed for the German energy company at a virtual signing ceremony witnessed by key DOE and MAN ES officials.
The MoU will see the country conduct feasibility studies into developing small- to medium-scale LNG import and regasification to power projects in the Visayas and Mindanao islands in the archipelago.
“We have always been very vocal about our desire to fully develop the downstream natural gas industry of the Philippines. Studies such as the one MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities,” said Mr Cusi.
MAN ES will determine the required mixed modes of land and sea transport to domestically provide natural gas supply in an economical manner, and the necessary infrastructure and transportation facilities that will contribute to the market development of natural gas in the regions.
The DOE and MAN ES also agreed to make the final feasibility report available to the public, especially to investors who are interested in developing LNG facilities in the covered areas.
The Philippines currently has little LNG infrastructure or import terminals but changes are imminent. An ADNOC carrier will be deployed to LNG platform company Atlantic Gulf & Pacific International Holdings later this year, where it will be used as the first LNG import terminal in the Philippines at Ilijan in Batangas Bay.
“Should the findings of MAN Energy Solution’s report be favourable, it would definitely pave the way for the entry of much-needed capital investments in Visayas and Mindanao. If not, the report’s results will still help guide us in recalibrating our strategic direction. So regardless of the study’s outcome, we are optimistic that our partnership would go a long way in helping make our natural gas aspirations a reality,” added Mr Cusi.
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