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    Seeking Optimal Solutions for Delivering Liquefied Natural Gas to Mid-Sized and Large Islands in the Philippines

    Kimura, Shigeru | October 2018
    Abstract
    The Philippines uses natural gas produced in the Malampaya gas field for power generation. However, supplies from this field will be depleted by 2022 and the gas sales and purchase agreement will end in 2024. Unless a new gas field is developed, the Philippines will become more dependence on imports of gas for power generation. Coal is the main fuel imported for power generation, but it will be overtaken by liquefied natural gas (LNG). Coal has low generation costs but it is a major emitter of carbon dioxide. In the small and mid-sized islands, power is mainly generated from diesel fuels, but diesel has higher power generation costs and higher carbon dioxide emissions than natural gas. A shift to LNG in the Philippines would entail high infrastructure costs. However, advances in technology have reduced this hurdle. In particular, floating storage and regasification units lower the cost of using LNG for medium-scale power generation by making domestic navigation from the LNG import terminal (the ‘primary terminal’) to terminals near natural gas power plants (‘subsidiary terminals’) more efficient. In this study, assuming the electricity demand of each province and LNG consumption for power generation in 2040 as the target year, we analysed the optimal LNG transport solutions in term of their cost using static (optimisation) and dynamic simulation models. Because LNG transport by ship is interrupted by natural disasters such as typhoons, the dynamic simulation includes typhoon strike scenarios.
    Citation
    Kimura, Shigeru. 2018. Seeking Optimal Solutions for Delivering Liquefied Natural Gas to Mid-Sized and Large Islands in the Philippines. © Economic Research Institute for ASEAN and East Asia. http://hdl.handle.net/11540/9083.
    Keywords
    Aid And Development
    Asian Development Bank
    Comprehensive Development Framework
    Development Cooperation
    Development Management
    Development Planning
    Development Strategies
    Gas Development
    Gas Market Development
    Oil and Gas Industry
    Natural Gas Industry
    Gas Industry
    Rural planning
    Aid coordination
    Industrial projects
    Infrastructure projects
    Natural resources policy
    Educational development
    Gas Reserve
    Gas Distribution
    Oil and Gas Leases
    Natural Gas
    Communication in rural development
    Communication in community development
    Economic development projects
    Development banks
    Economic forecasting
    Environmental auditing
    Cumulative effects assessment
    Human rights and globalization
    Gasoline
    Natural gas supply
    Offshore oil and gas leases
    Gas leases
    Natural gas reserves
    Fertilizers and manures
    Gasoline pump industry
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    Citable URI
    http://hdl.handle.net/11540/9083
    Metadata
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    ERIA_RPR_2017_14.pdf (1.996Mb)
    Author
    Kimura, Shigeru
    Theme
    Development
    Industry
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise