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THE Philippine Economic Zone Authority (PEZA) said it is considering liquefied natural gas (LNG) to power industrial locators within economic zones (ecozones).

“More than energy production, PEZA is looking at an LNG-based industry to support industrial processes like food processing, plastics and chemical manufacturing, and glass production, which utilize LNG as a heating and drying source,” said PEZA Director General Tereso O. Panga in a statement on Monday.

He said that the establishment of a “trigeneration facility” was the subject of a feasibility study PEZA conducted with Shell-UK Sustainable Group in 2019.

“The objective was to provide for an embedded power generation, district heating, and cooling system for our Cavite Economic Zone locators,” he said.

“We decided not to push through with the project because LNG was costly at that time to produce and deliver,” he added.

However, Mr. Panga said that the recent engagements among the Philippine National Oil Co., Indonesia’s PT Pertamina and Malaysia’s PERONAS for proposed LNG-powered generated facilities in off-grid islands in the Visayas and Mindanao indicate progress in the shift to an LNG-based industry.

“In our Mactan Economic Zone, we are facilitating the application of Cebu-based Topline Energy and its partner, US-based Excelerate Energy, for LNG infrastructure — which we hope will pave the way for the establishment of the first trigeneration facility in the country,” he added.

The Philippines’ investments and production capacity for oil and gas accounted for 0.7% of gross domestic product (GDP), the smallest among the six leading ASEAN economies, Mr. Panga said.

Vietnam invests the equivalent of 10% of its GDP, Indonesia 12%, and Malaysia 20%.

“With the reported rich deposits of oil and gas reserves in Mindanao and within our territorial waters or exclusive ecozone in the West Philippine Sea, we can tap these marine hydrocarbon resources for our energy, transport, and industrialization requirements,” Mr. Panga said.

“As such, the Philippines can be self-sufficient and self-sustaining as we pursue an LNG-based industry and capitalize on our indigenous oil and gas resources to accelerate our economic growth,” he added. — Justine Irish D. Tabile