Charting Liquefied Natural Gas Development in the Philippines: Demand, Feasibility, and Sustainability

This study assesses the development potential of the liquefied natural gas (LNG) industry in the Philippines across three key dimensions: demand, techno-economic feasibility, and life-cycle assessment (LCA). The Natural Gas Demand Assessment estimates that manufacturing special economic zones (SEZs) in Batangas could consume up to 487 MMscf/d by 2050 – nearly matching national industrial demand – positioning SEZs as a strategic anchor market. The Techno-Economic Analysis indicates that modular LNG systems integrating a 1-MW power unit are financially viable (NPV = US$42 million; IRR = 19%), supported by SEZs’ high electricity intensity. The LCA identifies methane leakage as the primary environmental concern but confirms combined-cycle gas turbines as the most efficient technology in terms of power output. Overall, the findings highlight LNG’s role as a transitional fuel that can strengthen energy security, attract private investment, and advance industrial decarbonisation. Unlocking this potential will require targeted fiscal incentives, streamlined permitting processes, and alignment with renewable energy goals to ensure a balanced and sustainable LNG expansion.