Energy
From The Report: The Philippines 2016
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Strong economic growth and a rise in energy demand have exerted pressure on the Philippines’ energy sector in recent years. With large, easily accessible oil and gas discoveries long since picked over, a continued decline in petroleum production has encouraged a heavy reliance on imports. As the country shifts its energy priorities away from crude oil and towards natural gas, the Department of Energy has set out a road map to establish a new network of gas pipelines to transport gas around Luzon from 2017 to 2022. Exploration in new, primarily frontier areas could mitigate the country’s increasing reliance on foreign energy sources to some degree, although any significant reserves are likely to remain tied up in territorial disputes for the foreseeable future. It is clear that several challenges remain with respect to the country’s electricity supply in the short term, particularly in Luzon. However, the implementation of new projects and incentives should help to alleviate the shortfall in the medium-to-long term, even as energy demand continues to climb at a rate in excess of 4% per annum. This chapter contains interviews with Francisco C Sebastian, Chairman, Global Business Power Corporation; and Tirso G Santillan Jr, CEO, Alsons Consolidated Resources.

Articles from this Chapter

Overview

Hungry for more: Growing demand is leading to new power solutions
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Strong, sustained economic growth along with a corresponding rise in consumption and increasing industrial aspirations continue to drive energy demand to new levels across the Philippines, even as local primary energy resources become more difficult to develop. Domestic oil and gas production remains spotty, with very little progress being made in developing and maintaining new production as output from ageing fields declines due to a number of factors contributing to limited progress on oil and…

Interview

Power to grow: OBG talks to Francisco C Sebastian, Chairman, Global Business Power Corporation
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Interview:Francisco C Sebastian How can the power requirements needed to complement growth in the Visayas region be obtained, and how can you attract more investor interest? FRANCISCO C SEBASTIAN: Within the context of the Electric Power Industry Reform Act, power generators have to compete, which ultimately drives prices down for consumers. Whereas in the past everything depended upon bilateral contracts with the government, independent power producers now need to look for buyers. Reliability…

Interview

Power surge: OBG talks to Tirso G Santillan Jr, CEO, Alsons Consolidated Resources
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Interview:Tirso G Santillan Jr How will Mindanao bridge its power shortages, and will additional capacity meet new demands? TIRSO G SANTILLAN JR: Mindanao has historically undergone shortages of power. Only recently has there been a significant drive for independent power producers (IPPs) to build their own power plants – mostly coal-fired or bunker diesel facilities – which are already in the process of being built or about to be commissioned. Should all this capacity be finalised, the…

Analysis

New solutions: The government is looking to agriculture to boost power supply
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Saddled with a legacy of heavy dependence on foreign oil to meet its primary energy needs, the Philippines has a long history of developing alternatives to serve as import substitution so as to counter the escalating cost of energy. In the past these efforts have included demand reduction through increased efficiency, adding greater incentives to attract coal, oil and gas prospectors, and encouraging a greater usage of alternative energy. The latter of these has been gaining significant traction…

Analysis

The next phase: The country’s largest natural gas field enters a new period of growth and development
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The 1991 discovery of the Malampaya gas field by Shell Philippines Exploration and the subsequent monetisation of the prospect is arguably the single most important energy play ever developed in the Philippines, and remains the largest active hydrocarbons play today. The natural gas reservoir single-handedly boosted the country’s natural gas output from less than 400m standard cu feet (scf) prior to inauguration of the new field in 2001 to more than 100bn scf by full commercialisation in 2005. It…