Energy

The Philippines’ rapid development has outpaced the capacity of the energy sector to meet surging demand. In response, long-term policies have been implemented to promote upstream investment, diversify energy sources and drive down the cost of electricity. Notable projects include the construction of the country’s first liquefied natural gas import terminal and regasification facility, as well as the Visayas-Mindanao Interconnection Project, which should improve the reliability and efficiency of energy supply. Moreover, while disputes with China over sovereignty in the South China Sea – also known as the West Philippine Sea – have hindered upstream development, recent agreements on exploration and development activities in these areas could offset declining reserves at the Malampaya gas field, the Philippines’ primary domestic source of gas. This chapter also contains interviews with Erramon Aboitiz, CEO and President, Aboitiz Equity Ventures and Aboitiz Power Corporation; and Dennis A Uy, president and CEO, Phoenix Petroleum.