Regulatory and infrastructural headwinds to liquefied natural gas (LNG) projects and competition from cheap coal are seen to curtail gas growth in the Philippines, Fitch Group-owned BMI Research has said. In its analysis, BMI projects an average annual gas growth of 5 percent over 2018 to 2026, slightly above the average 4.6 percent in Asian emerging markets, and underperforms higher-growth markets, including China and Vietnam. Citing its Infrastructure Key Projects Database, the research firm said coal and LNG projects in the Philippines have a total capacity of 7,300 megawatts and 1,500MW, respectively. Still, the project is expected to make more pronounced progress over the succeeding months, as the reality of the depletion at the Malampaya gas facility begins to bite. Coal imports surged 80 percent year-over-year over the first 11 months of 2017, BMI said, citing statistics from the Department of Energy.

Source: Manila Times December 17, 2017 16:07 UTC