Think tank warns vs use of imported LNG
MANILA -The Philippines should make the most of its renewable energy sources rather than rely on more costly imported liquefied natural gas (LNG) that could expose consumers to higher electricity rates, a think tank said on Thursday.
The Center for Energy, Ecology and Development (CEED) shared this view following the country’s receipt last week of its first LNG cargo at Atlantic, Gulf & Pacific Co.’s (AG&P) Batangas import terminal.
“Renewable energy is affordable and readily available in the country, on top of being more environmentally-friendly,” said CEED executive director Gerry Arances.
While the government is banking on LNG to address the looming power crisis, Arances noted that this resource could bring about more problems in terms of cost and security.
The LNG purchase by AG&P comes even as power distributor Manila Electric Co. (Meralco) and San Miguel subsidiaries South Premiere Power Corp. (SPPC) and Excellent Energy Resources Inc. are facing procurement and pricing disputes.
The two plants of the San Miguel companies–the Ilijan and Batangas gas-fired plants–were intended to be the primary recipient of regasified fuel from the AG&P terminal.
Regasification involves the conversion of LNG back to natural gas.
Both SPPC and Eeri entered into power supply agreements with Meralco for a combined crucial supply of 2,470 megawatts.
However, the SPPC deal was indefinitely suspended due to a pending case in the Court of Appeals, while San Miguel last month terminated its contract with Meralco due to delays on the part of the Energy Regulatory Commission.
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