The Department of Energy of the Philippines expects to replace depleting domestic gas reserves with a US$2bn LNG import, storage and distribution terminal. The LNG project could include a 200 MW power plant, helping the Philippines raise its installed capacity by more than 43.7 GW by 2040.
Domestic gas resources, mainly the Malampaya gas field, supply around 20% of the country's power generation and are expected to be depleted as early as 2024. An LNG import terminal would then be required by 2020, to ensure gas supply to the power sector and meet rising electricity demand. According to DOE's estimates, electricity consumption could triple by 2040, when they will be four times higher than in 2015.
In addition to Energy World Corporation, which should commission a 4.1 bcm/year floating storage and regasification unit (FSRU) in Quezon by the end of 2017, several companies have expressed interest in developing LNG import terminals in the archipelago, including Manila Electric Company (talks with Osaka Gas have been suspended) and First Gen (plan for a US$1bn LNG import terminal). Shell, the operator of the Malampaya gas field, is also considering an FSRU in Batangas to inject gas in the Philippines transmission network as of 2021.