MANILA, Sept 30 (Reuters) - The Philippines said on Tuesdayit was looking to increase the share of natural gas in itsenergy fuel mix to up to a third over the next 16 years, morethan double an earlier target, in a move that would open thedoor for more LNG imports.
Higher purchases from the Philippines would be welcome newsfor major liquefied natural gas (LNG) producers such as Chevron, ExxonMobil and Total, which arefacing uncertainty about longer-term demand from the top twobuyers of the fuel, Japan and South Korea.
The plan, if approved, may also mean lower coal imports forthe Southeast Asian country, which buys mainly from Indonesia tofuel some of its power plants.
"Because of our commitment to low carbon (emissions),natural gas will increase to more than 30 percent (of the mix),"Energy Undersecretary Zenaida Monsada told an industry forum.
"The Secretary of Energy has ... mentioned about 30 to 35percent," Monsada said.
The Philippines is set to start using electricity from powerplants fired by imported gas in 2015 when Australia-listedEnergy World Corp Ltd opens its LNG hub in Pagbilaoprovince.
Monsada said the government was looking earlier at a 15percent share in the fuel mix for natural gas and more than 60percent for coal.
Energy Secretary Carlos Jericho Petilla recently said theenergy department has already drafted a fuel policy mix thatincorporates the use of LNG and will be used to guide investorsin natural gas facilities.
Three other groups are looking to build LNG import terminalsin the Philippines, including Shell, which plans toinstall a floating facility near its Tabangao refinery inBatangas province.
The Philippines' First Gen Corp plans to build a$1 billion LNG import terminal and bring it online by the end of2019, as it seeks to secure supply for its growing portfolio ofgas-fired power plants.
Monsada said state-owned Philippine National Oil Company hassigned an agreement with Brunei National Petroleum to undertakea feasibility study for a floating storage and regasificationfacility in southern Philippines.
Shell's Philippine unit operates the country's sole naturalgas field, in Malampaya in the South China Sea, supplying threegas-fired power plants, including two owned by First Gen. Thegovernment expects the Malampaya field to run dry by 2023.
"The DOE considers LNG as a realistic option to support ourpower generation," Monsada said. "But it is clear we need somecritical infrastructure, such as import terminals, power plantsand pipelines." (Reporting by Erik dela Cruz; Editing by Tom Hogue)
