Energy

Strong economic growth and a rise in energy demand have exerted pressure on the Philippines’ energy sector in recent years. With large, easily accessible oil and gas discoveries long since picked over, a continued decline in petroleum production has encouraged a heavy reliance on imports. As the country shifts its energy priorities away from crude oil and towards natural gas, the Department of Energy has set out a road map to establish a new network of gas pipelines to transport gas around Luzon from 2017 to 2022. Exploration in new, primarily frontier areas could mitigate the country’s increasing reliance on foreign energy sources to some degree, although any significant reserves are likely to remain tied up in territorial disputes for the foreseeable future. It is clear that several challenges remain with respect to the country’s electricity supply in the short term, particularly in Luzon. However, the implementation of new projects and incentives should help to alleviate the shortfall in the medium-to-long term, even as energy demand continues to climb at a rate in excess of 4% per annum. This chapter contains interviews with Francisco C Sebastian, Chairman, Global Business Power Corporation; and Tirso G Santillan Jr, CEO, Alsons Consolidated Resources.