In the recently-concluded 35th ASEAN Energy Business Forum, Department of Energy (DOE) Secretary Alfonso G. Cusi announced that the administration plans to pursue interest in producing liquefied natural gas (LNG) in anticipation of Malampaya gas field’s eventual deterioration.

The secretary shared that groundbreaking activities for the first LNG hub in the country have already been scheduled and the site is expected to be completed by 2018. The department would craft a regulatory framework on LNG and a public consultation regarding this is slated for October 10.

Meanwhile, Senate Energy Committee Chairman Sen. Sherwin T. Gatchalian reiterated the urgent need “for the power sector to put in place an LNG framework.”

“We would be tackling various legislative measures that will talk about LNG, and to hasten the development of the LNG industry here in our country. We really need to put the framework in place,” the Senator said.

The Philippine National Oil Co. (PNOC), on the other hand, was tasked to develop the LNG hub and to equip this with facilities for storage, liquefaction, regasification, and distribution. PNOC President Reuben Lista reported that there are 68 firms who expressed interest to partner with them for this project.

While developing the proposal for the hub, PNOC could seek the assistance of the International Finance Corp (IFC), a member of the World Bank Group, to conduct a feasibility study.

LNG is classified as a natural gas. For ease of storage and transport, it is usually converted into its liquid form and then regasified before distribution.

*This article was developed through reports by Business Mirror and Manila Bulletin.