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LNG-to-power investors in the Philippines risk exposure to $14 billion in stranded assets

May 01, 2021
Sam Reynolds
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Key Findings

The Philippines has a long history of incomplete LNG import projects and to date a large diversity of industry players with extensive financial capacity and project management expertise-including international oil and gas majors, commodity traders, state-owned oil companies, and regional utilities-have been unable to bring LNG-to-power assets online.

Since there are no available government-backed power purchase agreements (PPAs) or guarantees, investors in LNG-fired power plants will be highly exposed to market risks arising from changes in the commercial and regulatory landscape.

High uncertainty in the Philippines market contradicts the nature of the natural gas industry

High regulatory and financial uncertainty in the Philippines market

Sam Reynolds

Sam Reynolds, an energy finance analyst with the Institute for Energy Economics and Financial Analysis (IEEFA), focuses on the economic, financial, and climate risks associated with natural gas and liquefied natural gas (LNG) infrastructure developments in emerging Asia. 

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