Charting Liquefied Natural Gas Development in the Philippines: Demand, Feasibility, and Sustainability

Economic Research Institute for ASEAN and East Asia (ERIA) and University of the Philippines Statistical Center Research Foundation, Inc (upscrfi)

No 2025-RPR-27 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This study assesses the development potential of the liquefied natural gas (LNG) industry in the Philippines across three key dimensions: demand, techno-economic feasibility, and life-cycle assessment (LCA). The Natural Gas Demand Assessment estimates that manufacturing special economic zones (SEZs) in Batangas could consume up to 487 MMscf/d by 2050 – nearly matching national industrial demand – positioning SEZs as a strategic anchor market. The Techno-Economic Analysis indicates that modular LNG systems integrating a 1-MW power unit are financially viable (NPV = US$42 million; IRR = 19%), supported by SEZs’ high electricity intensity. The LCA identifies methane leakage as the primary environmental concern but confirms combined-cycle gas turbines as the most efficient technology in terms of power output. Overall, the findings highlight LNG’s role as a transitional fuel that can strengthen energy security, attract private investment, and advance industrial decarbonisation.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:era:eriabk:2025-rpr-27

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