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DOE Partners with Germany’s MAN Energy Solutions for LNG Feasibility Study

Feb 27, 2022

The Department of Energy (DOE) signed a Memorandum of Understanding (MOU) with German firm MAN Energy Solutions SE (MAN ES) on 22 February, in line with the agency’s efforts to help facilitate the development of the country’s downstream natural gas industry,

Energy Secretary Alfonso G. Cusi signed the MOU on behalf of the DOE, while MAN ES Executive Board Member and Chief Sales Officer, Mr. Wayne Jones, signed for the German energy company at a virtual signing ceremony witnessed by key DOE and MAN ES officials.

The MOU provides for the conduct of a feasibility study on the development of small- to medium-scale liquefied natural gas (LNG) importation and regasification to power projects in Visayas and Mindanao.

“We have always been very vocal about our desire to fully develop the downstream natural gas industry of the Philippines.  Studies such as the one that MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities,” the Energy chief said in his message.

Furthermore, under the MOU, MAN ES will determine the required mixed modes of land and sea transport to domestically provide natural gas supply in an economical manner, as well as the necessary infrastructure and transportation facilities that will contribute to the market development of natural gas in said regions.

The DOE and MAN ES also agreed to make the final feasibility report available to the public, especially to those investors who are interested in developing LNG facilities in the covered areas.

“Should the findings of MAN Energy Solution’s Report be favorable, it would definitely pave the way for the entry of much-needed capital investments in Visayas and Mindanao. If not, the Report’s results will still help guide us in recalibrating our strategic direction. So regardless of the study’s outcome, we are optimistic that our partnership would go a long way in helping make our natural gas aspirations a reality,” Secretary Cusi concluded.