SCJLP KEYNOTE SPEECH
Philippines Infrastructure Development Seminar
Japan METI/JICA/ Philippines DOE
New World hotel, Makati
23 February 2015
To our distinguished guests, to the Honorable Officials of the Japanese government and my colleagues from the private, business and government sector, a very pleasant good morning to everyone. In behalf of Philippine government, with arms wide open, I welcome you for today’s activity.
It has been 13 years since the Malampaya-Gas-to–Power Project (MGPP) was launched in 2001. The project catalyzed the birth of natural gas industry in the Philippines. Since then, natural gas became a major contributor in the country’s power generation sector.
Now, natural gas is considered as one of the most important components of the Philippine’s Fuel Diversification Program. It is considered as one the most viable alternative to oil-based energy, particularly in power generation, transport and industrial processes.
The biggest challenge of our natural industry today is the development of infrastructures that require considerable investments. This is to be able to realize intensified natural gas utilization, not only for power generation but also for non-power application as well.
On the other hand, in order to guarantee the needed investments to put up required infrastructures, the uncertainty of market development of the industry, through the assurance of anchor demand and other potential market off-takers should also be addressed.
The Philippine’s through the DOE, faced these challenges head on. It initiated options for industry’s expansion and declared additional supply of gas from Malampaya (banked gas), which triggered renewed interests from industry players.
Likewise, the PNOC, the government’s energy development investment arm has revived its effort to pursue the implementation of the much awaited Batangas-to –Manila Pipeline (Bat-Man).
Because of this, several proposals from private companies signifying interests to venture into business for the different aspects of the gas value chain were received by the government.
However, unless new resources are discovered, gas imports will be necessary to supplement the productions limits of the Malampaya gas fields in order to meet the projected demand for gas which is coming from various potential markets.
The country urgently needed a comprehensive policy regulatory framework for its natural gas industry. This Energy Infrastructure Development Seminar is a golden opportunity for both Japan and the Philippines to share experience and expertise in establishing the Philippine’s energy policy framework related to natural gas and promote mutual understanding in the gas sector.
The DOE would truly appreciate your active participation and contribution for the success of this activity. Allow me to express my advance sincere appreciation of your support and cooperation. Thank you and Mabuhay.