“Looming energy crisis foreseen as Philippines may lose 3,200 MW from existing gas plants, which generate about one-third of Luzon’s power”.
– ADB (2018)
A Narrative of the Industry of the Philippines.
In the pursuit of a sustainable energy future, the world is at a critical crossroads. Net-zero goals to combat climate change demand a pragmatic approach, acknowledging the limitations of renewable energy in meeting the escalating global demand. As the global community endeavors to transition to a net-zero future, ensuring energy security becomes imperative. The intermittent nature of renewable sources introduces volatility into the energy supply chain. New oil and gas explorations offer a stable and secure source of energy during this transitional period, mitigating the risks associated with the intermittency of renewable sources.
Understanding Energy Dynamics: Baseload and Peak Load
In the evolving energy landscape, baseload and peak load refer to the essential and variable electricity demands of a nation. As renewable energy continues to scale, its intermittent nature necessitates reliable support from transitional energy sources. During this shift, responsibly developed hydrocarbon resources particularly natural gas are expected to play a pivotal role in supporting grid stability. These transitional fuels provide the flexibility needed to ensure a secure, resilient, and climate-aligned energy system as technology matures and policy goals advance.
Global Energy Dynamics and the Role of Hydrocarbon
The geopolitical landscape and vulnerabilities in the global supply chain underscore the strategic importance of maintaining a diversified energy portfolio. Relying exclusively on renewable sources exposes nations to potential disruptions, compromising economic stability and national security. According to the International Energy Agency, oil and gas are projected to play a critical role in the energy mix, contributing over 50% of the world’s energy needs even in scenarios with aggressive decarbonization efforts, particularly between 2023 and 2050.
Energy Policy Alignment
The Philippines is undergoing a decisive energy transformation, guided by strong policy signals aimed at reducing import dependency, phasing out coal, and supporting clean, flexible energy systems. PiPo™ aligns with these national goals by positioning its upstream exploration activities within the framework of long-term climate and energy resilience.
RA 12210: Natural Gas Law
Republic Act 12210 lays the foundation for a secure, competitive, and transition-aligned natural gas industry in the Philippines. The law mandates the development of essential infrastructure such as LNG terminals, pipelines, and storage facilities to expand national access and strengthen grid flexibility in the face of rising renewable energy penetration.
It prioritizes the use of locally sourced natural gas, requiring power generation companies to procure indigenous supply where commercially available before resorting to imports. This supports energy independence while opening market pathways for future upstream discoveries.
The Philippines is undergoing a decisive energy transformation, guided by strong policy signals aimed at reducing import dependency, phasing out coal, and supporting clean, flexible energy systems. PiPo™ aligns with these national goals by positioning its upstream exploration activities within the framework of long-term climate and energy resilience.
Coal Moratorium
The Philippine Department of Energy has imposed a moratorium on new coal-fired power plants under the Clean Energy Scenario of the Philippine Energy Plan 2020 to 2040. With coal still accounting for over 70 percent of national power generation, the move marks a decisive policy shift toward a more diversified, resilient, and climate-aligned energy system.
Coal’s limitations slow ramp-up times, rigid dispatch profiles, and high carbon intensity make it increasingly incompatible with a grid that demands flexibility and greater renewable integration. To support this transition, the DOE now requires proposed coal-based power projects to integrate at least 15 percent renewable energy, while targeting a 50 percent renewable share in the power mix by 2040.
Within this evolving landscape, natural gas is recognized as a critical transition fuel. Indigenous gas resources offer fast-ramping, firm capacity that can complement solar and wind variability, reduce emissions intensity, and stabilize the grid. Positioned as a bridge between legacy baseload and future renewable-dominated systems, natural gas aligns with the intent of the coal moratorium and the broader national climate strategy.
Empowering Philippine Energy Independence
The Philippine government recognizes the need for energy independence, a crucial component of its 2040 Energy Sufficiency Roadmap. The Department of Energy (DOE) is committed to intensifying the exploration and development of fossil fuels, not only to meet current energy demand but also to ensure a stable supply for the Filipino people. This strategic approach aligns with the DOE’s efforts to create a healthy energy mix by promoting both the renewable energy sector and new oil and gas exploration activities. The goal is to reduce reliance on imports and build a resilient energy infrastructure that can withstand the challenges of a rapidly changing global energy landscape.
In essence, the Philippines is actively steering its energy future towards a harmonious blend of sustainability, security, and self-sufficiency, aligning with global efforts to navigate the complex journey toward a net-zero world.