In Mindoro, use of substitute natural gas pushed

Oriental Mindoro will push for trial projects using substitute natural gas (SNG) to complement ongoing efforts in oil and gas as well as renewable energy development, according to Rep. Reynaldo Umali of the province’s 2nd District.

Umali cited studies that showed the Philippines has the potential to generate over 10,000 megawatts (MW) of SNG in the next decade.

A 60-MW pilot project is being considered in Mindoro to showcase the benefits of SNG, he said.

The lawmaker also proposed that the mothballed Bataan Nuclear power plant in Luzon be converted into a gas-fired facility fueled by SNG, with its capacity increased to 1,800 MW from 600 MW.

The Philippines will save on foreign exchange “if we stop importing 400,000 barrels of petroleum a day for our transportation fuel requirements because we will use SNG as feedstock for conversion to ultra-clean transportation fuels,” he explained.

If developed well, SNG could help bring down electricity prices, he said.

In the United States, a company called Dakota Gasification Co. has been producing SNG for years, he said. New technologies and cheaper feedstocks can bring down the cost of SNG. SNG can also be used as feedstock for transport fuel, which will help reduce the country’s dependence on imported petroleum products.

Substitute natural gas or synthetic natural gas can be produced from fossil fuels such as lignite coal and oil shale, or from biofuels (methane), which is then called bio-SNG.

“We can even lower the carbon intensity of the production process via carbon capture, re-use and ultimate storage. With carbon reuse, the Philippines can produce fertilizers to enhance the productivity of our agriculture without draining our foreign exchange reserves with imported fertilizer,” Umali said.

Substitute natural gas can also replace the Malampaya natural gas, which may be depleted by 2024 unless new wells are developed in the area.