Page 9 - AsianOil Week 07 2023

AsianOil PIPELINES & TRANSPORT AsianOil

Japan’s JERA commits to LNG supply

for Philippines

JAPAN A statement from the Presidential Communica- areas that are viewed as within the Philippines
tions Office in the Philippines this week said that exclusive economic zone (EEZ).
JERA is a major Japanese energy firm JERA committed to sup- Earlier this year, the Philippines government
purchaser of global plying the Philippines with LNG during a visit approved the seventh license for an LNG import
LNG. to Japan earlier this year by Philippines President facility in the country. The Samat LNG Corpo-
Ferdinand Marcos Jr. ration intends to build a small-scale terminal at
JERA, a joint venture between Japan’s Tokyo’s Mariveles in Bataan 60 kms south of Manila. The
Electric Power Company and Chubu Electric plant is to begin operating during the first half of
Power, is the largest power producer in Japan and 2024 and will require up to 400,000 tons of LNG
a major purchaser of LNG on the global market. annually for fuel. The terminal will supply small
According to the government statement, JERA power generators, manufactures and transport
president Satoshi Onoda told President Marcos within its region.
that the firm was procuring sufficient enough The LNG sector will produce at least 3,000
supplies of LNG to “contribute to the Philippines gigawatts to cover growing demand throughout
in the supply of LNG.” the country as the Malampaya field declines.
The Philippines plans to launch its LNG sec- LNG projects due to begin operations this year
tor this year when three regasification facilities are being constructed by First Gen Corporation,
are due to come into operation and begin sup- Singapore’s Atlantic, Gulf & Pacific (AG&P) and
plying power. The country relies heavily on coal, Australia’s Energy World Corporation.
but is working to decarbonize its energy sector Japan’s JERA is also participating in the
by transitioning to renewables. The switch to Philippines efforts to switch away from coal. It
imported natural gas comes as the Philippines recently signed a memorandum of understand-
sees the main source of its own domestic gas sup- ing with Aboitiz Power Corporation to conduct
ply, the Malampaya field, moving into decline. a joint study on ammonia co-firing at the Aboitiz
The field is expected to be depleted before the coal-fired plants in the Philippines.
end of this decade. Meanwhile, the country’s The Japanese company paid $1.58 billion for
search to other domestic gas resources is com- 21% of Aboitiz Power Corporation in September
plicated by its dealings with China, which lays 2021 with a view to expanding its participation
claim to most of the South China Sea, including in the Philippines energy sector. ™

Week 07 16•February•2023 www. NEWSBASE .com P9