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Philippines bets on natural gas to accelerate renewable energy

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There are 19 LNG terminals in the Coral Triangle. A report by US nonprofits Earth Insight and SkyTruth warned that expanding gas infrastructure increases the risk of harm from water pollution, heightened shipping traffic, and oil spills, all of which threaten marine ecosystems and local livelihoods.

According to the report, over 100 offshore oil and gas blocks are currently producing in the Coral Triangle, with over 450 additional blocks being explored for future extraction. If all existing blocks were to go into production, approximately 16 per cent of the biodiverse region would be directly impacted by oil and gas development.

“The Philippines has the second-highest number of oil slicks from transiting vessels in the Coral Triangle. With a large amount of oil and gas blocks in the exploration phase, there is still an opportunity to change course and defend its many sensitive habitats,” the report noted.

Under the new legislation, the Philippine Department of Environment and Natural Resources (DENR) is ordered to establish national standards for methane emissions and other pollutants from the natural gas industry not regulated by existing laws.

The DENR must also determine and monitor compliance with the environmental standards for the siting, construction, operation and maintenance, expansion, rehabilitation, decommissioning, and abandonment of natural gas facilities.

The path from fossil fuels

On the day he returned to the White House, Donald Trump lifted a freeze on processing export permits for new LNG projects. IEEFA’s Reynolds said the move’s impact on the Philippines would be minimal, but would add to the “volatility of LNG even more”.

“We’re already seeing that play out with China. LNG becomes the target of trade bullying and retaliation, and it creates, overall, a much more uncertain environment,” said Reynolds.

“I think that’s going to be very important for the Philippines to consider. Much of its LNG is coming from the United States but to what extent does Trump even exacerbate some of the challenges that the fuel was already facing?” he added.

China is the world’s largest buyer of LNG, while the US is the largest exporter. But China has not imported any LNG from the US since February when Trump announced tariffs on the country, reports Nikkei Asia.

Many US LNG contracts are set to begin in the coming years but much of this supply may not reach China due to the tariffs, said Reynolds. So Reynolds thinks China will resell increasing volumes of the US LNG they are contracted to buy. “I think that could drive a larger push into Southeast Asia on behalf of Chinese traders.”

China National Offshore Oil Corp, the largest offshore oil and gas producer in China, is already supplying LNG to Filipino energy provider First Gen Corporation.

As the world warms and the Philippines continues to face devastating climate disasters, gas should have no place in the country’s energy future, environmentalists and clean energy advocates argue. They say the Philippines, one of the most climate-vulnerable nations, must instead prioritise renewable energy.

The timing of the law’s passage “can almost be interpreted as an insult to the many who have suffered and continue to suffer from recent climate disasters,” said Jefferson Chua, campaigner at Greenpeace Philippines, referring to the six consecutive tropical cyclones that hit the country in late October and November 2024.

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