September 10, 2020 Read More →

Natural gas pitched as cleaner, more flexible than coal

Business World:

Properly functioning facilities cannot be underestimated in business. Facilities adequately supplied with power can significantly contribute to the productivity of employees and, in the long run, the profitability of an establishment. In addition, we must also be careful about the potential emissions and pollutants from energy sources, aside from ensuring their reliability.

Cleaner energy sources, however, could provide the same amount of power supply at a lower cost and without polluting the environment, depending on where it’s sourced. Among these sources is natural gas. It has been part of the country’s energy mix since the Malampaya Gas Field, the biggest commercial gas discovery in the Philippines to date, started operating. First Gen Corporation — the largest off-taker of natural gas and generator of natural gas-fired power electricity in the country — currently sources its natural gas from this indigenous field, off the coast of Palawan.

Natural gas also has been found to have lower generation costs. Data from Japan’s Ministry of Economy, Trade and Industry shows that spot liquefied natural gas (LNG) prices have decreased from an average arrival-based price of 6.7 USD/MMBTu in December 2019 to 2.6 USD/MMBTu last May.”

Furthermore, a 2018 report by the Institute for Energy Economics and Financial Analysis stated that excessive reliance on imported coal is one of the main reasons the Philippines has the highest electricity prices in the ASEAN region. It concluded that natural gas, together with other energy sources “can be combined to create a cheaper, more diverse, and secure energy system”. 

[Staff Report]

More: Why natural gas is a great energy choice for companies

Posted in: IEEFA In the News

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