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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