2nd Pacific Energy SummitJakarta, Indonesia

February 21-23, 2011

Current Issues:

Philippine Natural Gas Industry

Mr. Jesus T. Tamang

Director, Energy Policy & Planning

Department of Energy

Production and Consumption in 2009

Transport - 18

Malampaya Gas Field

2.7 TCF (2001)

Industry - 3,019

Power - 125,058

Production

138,030 mmscf

Consumption

128,095 mmscf

Libertad Gas Field

0.6 BCF (2006)

61,934 GWh15,610 MW

Includes off-grid generationIncludes embedded generator

Natural Gas

18.14%

Geothermal

12.51%

Oil-based

20.46%

Hydro

21.09% Coal

27.40%

Solar

0.01%

Wind

0.21% Biomass

0.19%

Oil-based

8.69%

Natural Gas

32.11%

Geothermal

16.67%

Coal

26.60%

Hydro

15.80%

Wind

0.10%Solar

0.00%

Biomass

0.02%

Installed Capacity Gross Generation

Natural Gas in Power Generation

2009 Capacity and Gross Generation , Philippines

Power Sector (2010-2030)

Luzon = 11,900 MW

Visayas = 2,150 MW

Mindanao = 2,500 MW

Conversion = 1,200 MW

Transport Sector = +10,000 units of

CNG Vehicles by 2018

Industry = hundreds of international

locators of mixed industries in

Special Economic Zones

Buildings (Commercial and

Residential) = potential

connectors and convertors along

the pipeline routes

Potential Market for Natural Gas

36 Service Contracts

9 onshore areas

27 offsfore areas

On-going Oil and Gas

Explorations

Supply Expansion Program

Mean total resource

of 8,895 billion BOE

Gas= 28,531 BCF

Oil = 3,629 B Bbls

Areas currently

evaluated for the next

contracting round

Central Luzon Basin

Cagayan Basin

Mindoro-Cuyo Basin

Agusan-Davao Basin

East Palawan Basin

NW Palawan Basin

Cotabato Basin

Supply Expansion Program

Energy World CorporationLNG Receiving Terminal/Hub

Pagbilao, Quezon

300MW CCGT Power Plant

Korean Consortium

SK-EC, KOWEPO, AII

LNG Receiving Terminal/Hub

Limay, Bataan

1,000 MW Power Plant

Trans-ASEAN Gas Pipeline Connection via Malampaya

Land at Batangas

Land at Western Mindanao

Supply Expansion Program

Pipelines

423 kms of Transmission

504 sq. kms. of Distribution

Gas-fired Power Plants

3000 MW of Greenfield

600 MW of Conversion

Gas in Industry

30 Ecozones in Calabarzon

Subic and Clark

Cogeneration Systems

Gas in Buildings

Cogeneration Systems

District Cooling

Gas in Transport

10,000 units of CNG

Vehicles

Refilling Stations

Mother Stations

Conversion Kits

LNG Terminals

BATMAN 1

(Batangas

Manila)

80-100 kms.

BATMAN 2

(Bataan -

Manila)

140 kms.

BATCAVE

(Batangas –

Cavite)

40 kms

RO-BIN

(Rosario -

Biñan)

35 kms.

SU-MA

(Sucat -

Malaya)

35 kms.

ET LOOP

(EDSA – Taft

Loop)

40 kms.

CATLINE

(Calaca

Spurline)

30 kms.

Strategic Infrastructure

Batangas-Manila Pipeline

( BatMan 1)

Main transmission line

from Batangas to Metro

Manila and spur lines

CAPEX estimated at

~US$ 118 million

Potential market for 95

mmscfd

PNOC engaging an

Adviser

Operational by 2013

Zone 1

Zone 2

Zone 3

Strategic Infrastructure

Natural Gas Supports the Country’s

Energy Reform Agenda

Ensure Energy

Security

Achieve Optimal Energy Pricing

Develop a Sustainable

Energy System

Good Governance thru stakeholder participation, transparency,

multi-sectoral partnership and use of ICT

“Energy Access for More”

A key priority of government to mainstream access of the

greater majority to reliable energy services and fuel, most

importantly, local productivity and countryside development

Highlights of Natural Gas Issues

• Power sector remains to be the major driver for natural gas industry development

• Main challenge now is to put up identified critical and strategic infrastructure

• LNG is expected to penetrate the market

• Natural gas provides for energy security and addressing climate change

2nd Pacific Energy SummitJakarta, Indonesia

February 21-23, 2011

Current Issues:

Philippine Natural Gas Industry

Mr. Jesus T. Tamang

Director, Energy Policy & Planning

Department of Energy