5 May 2021 (IEEFA Philippines): The race to develop liquified natural gas (LNG) facilities in the Philippines has gone from a marathon to a sprint but potential LNG investors must proceed at their own risk, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
“Officials in the Philippines have endorsed a rapid buildout of LNG import infrastructure due to the anticipated depletion of the Malampaya deepwater development, the country’s only domestic source of natural gas, and high GDP growth expected over the next decade,” says the report’s author IEEFA Energy Finance Analyst, Sam Reynolds.
Report: RE endangers viability of LNG projects on May 6, 2021 at 8:29 pm
Around $13.6 billion (about Php654 billion) worth of liquefied natural gas (LNG) projects could be stranded due to the growth of renewable energy (RE) in the Philippines, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).
The report cited the government’s “rapid buildout of infrastructure” ahead of the depletion of the Malampaya gas field’s resources.
“As renewables prices continue to drop and global LNG markets tighten to increase fuel costs, LNG-related investments will become increasingly uncompetitive in the Philippines market, especially as smaller electricity consumers become eligible to choose their retail suppliers,” IEEFA Energy Finance analyst Sam Reynolds said in a statement.
$14B in planned LNG infrastructure in PHL at risk of being stranded BusinessWorld 3 hrs ago
Reporter
NEARLY $14-billion worth of planned liquified natural gas (LNG) import infrastructure in the Philippines may be at risk of becoming stranded assets as the cost of renewable power generation drops, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
“All 10.9 GW (gigawatts) of LNG-fired power capacity in the current pipeline with an estimated value of $13.6 billion in total investment is at risk of being stranded as the market adapts to lower cost renewable power generation,” IEEFA, an organization that examines energy markets, trends and policies, said in a report.