Natural Gas
Because of this, the Philippines has long been recognised as a potential new market for imported LNG. The country officially realised its LNG goal in 2023, when two terminals in Batangas Bay entered operations. Since then, the Philippines has seen its first long-term LNG deal, while LNG-to-power capabilities are being developed, including a $3.3 billion collaboration between Meralco PowerGen, Aboitiz Power and San Miguel Global Power.
With another five LNG terminals approved for development, there is considerable room for growth in the Philippines’ still-young LNG industry. Continued development and refinement of a policy and regulatory environment that supports investment and expansion of infrastructure will be critical. The Philippines Government is supporting advancement of the country’s LNG capabilities and collaboration with the Japanese Government and private companies from Japan – including ANGEA members JERA, Mitsubishi Heavy Industries and JGC – will also facilitate future development.
Natural Gas Reserves
The Philippines’ has only one significant gas field – Malampaya. This field has been in production since 2001, however the production of gas from this field is now declining. Efforts are being made to extend the lifespan of Malampaya.
Energy Plan
The Philippine Energy Plan 2023-50 identifies both reference and accelerated clean energy scenarios for the development of the country’s future energy system.
Under the reference scenario, more than 50% of electricity in 2050 would come from a combination of renewable sources – mainly wind and solar – but the biggest single source of power would be gas, at nearly 35%. The reference scenario projects LNG supply to the Philippines reaching 24.3 million tonnes of oil equivalent per annum in 2050, with coal’s share of electricity generation declining to 14%.
The clean energy scenarios point at an even bigger share of generation coming from renewables (almost 65%), with around 15% from gas, 11% from coal and 8.7% from nuclear and other technologies.
The Energy Plan outlines priorities around affordable, reliable and resilient, and clean and sustainable energy – a balance that highlights the challenge in front of the Philippines (and other emerging Asian economies) as they negotiate the energy transition.
With procurement still behind schedule after several rounds of Green Energy Auctions, there is a strong likelihood that the Philippines’ 2030 target of a 35% renewable energy share will not be achieved. Without other solutions, planned retirement of coal-fired power stations would be slowed, and emissions reduction goals would not be met.
The Philippines Main Energy Source
The country currently leans on coal for 60% of electricity generation because it is affordable, readily available and reliable. Even then, recent power outages during heatwaves in the Philippines have disrupted communities and industries and demonstrated the vulnerability of its energy grid, which will be tested further as more renewable energy comes online.
It’s therefore expected that Philippines would take a pragmatic approach to its future energy planning, one that includes a sizeable role for gas as an always-available source of power that can help manage intermittency issues associated with increased use of renewable energy. This would align with recent Department of Energy activities, including a high-level Asia Zero Emission Community dialogue with Japan that featured discussions about the use of LNG as a transition fuel.
The Philippines’ framework and roadmap for development of hydrogen and derivatives in its energy system is still in draft format and under development.
Ammonia is one low-carbon fuel that could be of particular use as the Philippines looks to reduce its coal use. JERA is working with one of the Philippines’ leading power providers, Aboitiz Power, on a trial of ammonia co-firing in coal-fired electricity generation.
The case for LNG + renewables
A 2025 study by S&P Global Commodity Insights identified a combination of increased use of LNG and expansion of renewable energy as a viable pathway for the Philippines to accelerate the phaseout of coal and decarbonisation of the power sector.
The analysis found that the Philippines could use this approach to reduce emissions by 38% and retire half of coal-fired power by 2035, while investing only 16% more in the energy systems. This was possible because LNG from Australia, the US and Qatar – the world’s three biggest exporters – had 47% lower average lifecycle carbon intensity when used in power generation than coal.
The study revealed a sharp contrast in the affordability of the Philippines pursuing full decarbonisation by 2035. This would require energy system investment to double, while the average marginal electricity prices – the costs paid by communities and industries – would also more than double.
