LNG in Phillipines

This article suggests that a tax on coal in the Philippines will occur. It also suggests that EWC's LNG Hub is a game changer... ie: Future is bright for EWC in the Philippines.

http://ieefa.org/wp-content/uploads/2017/10/Carving-out-Coal-in-the Philippines_IEEFAICSC_ONLINE_12Oct2017.pdf

The Challenge from LNG

In a presentation at the University of the Philippines School of Economics on August 31, 2017⁸²

First Philippine Holdings Chief Operating Officer, Giles Puno, presented the newly commissioned 414-MW San Gabriel Combined Cycle Gas Turbine (CCGT) as an alternative power supply option to new coal plants, particularly those that have yet to be constructed. He stressed that new and existing natural gas plants can, and in fact, have already offered prices that are competitive for both baseload and mid-merit segments.

The comments gathered above as well as other similar views beg the question: Why would a utility favor coal plants that have yet to be built over existing competitive alternatives with noconstruction risks?

While the DoE has stated its support for LNG as a way to transition toward a greener power system and to replace Malampaya supply once it is depleted, the expected next steps will be to develop clearer legislative and policy initiatives. The DoE even supports the establishment of an LNG hub to include floating storage and regasification units (FSRUs) and small-scale LNG applications.

Even prior to completion of the foregoing legislative and policy initiatives, First Gen is proceeding with a ~US$1 billion LNG facility near its four gas-fired plants in Batangas to meet own demand and those of existing and future users, including the Ilijan power plant and potentially other industries beyond the power sector. Similarly, Energy World⁸³ has been working on its LNG terminal facilities in Pagbilao, but has yet to complete construction of its 650 MW CCGT in the area, among others, because of transmission and other issues. It likewisefaces other challenges, including being hundreds of kilometers away from the existing market—the gas-fired facilities in Batangas—currently being supplied by the soon-to-deplete Malampaya field.

These developments are game-changing, and have to be considered by utilities and regulators⁸⁰​