LNG supply eyed for Calabarzon ecozones

MANILA, Philippines — The Philippine Economic Zone Authority (Peza) is exploring a liquefied natural gas (LNG) supply system for economic zones in Calabarzon, aiming for a reliable and cost-effective energy source for local industries.

To facilitate this, Peza has engaged South Premiere Power Corp. (SPPC) and Linseed Field Corp. (LFC) to conduct a feasibility study on an integrated LNG downstream supply system for the Calabarzon ecozones.

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LFC operates the largest LNG import and regasification terminal in Batangas, while SPPC runs one of the two gas-fired power facilities supported by the terminal.

LNG project assessed

Under a memorandum of understanding signed in July, the two companies will evaluate the potential for supplying LNG to ecozone locators for electricity generation and industrial use. Peza stated that if feasible, this collaboration could lead to an LNG supply agreement.

“This MOU is a step toward ensuring that our locators never have to choose between reliable power and competitive costs,” said Peza Director General Tereso Panga. He emphasized that the partnership lays groundwork for sustainable energy solutions as Calabarzon positions itself as a critical hub in the country’s industrial corridor.

By utilizing LNG, Peza aims to support the transition to lower-carbon energy in its ecozones. This initiative aligns with the agency’s increasing focus on renewable energy and lower-carbon solutions to attract green investments.

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To date, Peza has approved 21 solar and renewable energy projects worth over P97 billion, creating more than 1,300 jobs.

Peza also collaborates with Manila Electric Co., Upgrade Energy Philippines, and the Philippine National Oil Co. (PNOC).

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Notably, PNOC is partnering with Peza to develop renewable energy-powered industrial parks tailored for energy-intensive companies. Additionally, Peza has recently joined forces with the Philippine Energy Efficiency Alliance to advance energy-efficiency initiatives across its economic zones. /pai