Home » Philippines to Boost Coal Power Output Amid LNG Disruptions

Philippines to Boost Coal Power Output Amid LNG Disruptions

Liquefied natural gas (LNG) tanker is passing by Strait of Singapore.

Philippine President Ferdinand Marcos on Tuesday declared a state of “national energy emergency,” citing risks to domestic fuel supply and electricity stability caused by the ongoing conflict in the Middle East.

The declaration follows statements by Energy Secretary Sharon Garin that the government plans to temporarily increase output from coal-fired power plants to mitigate rising electricity costs amid disruptions to liquefied natural gas (LNG) imports.

An executive order released Tuesday evening grants the Department of Energy authority to make advance payments of 15 percent to secure fuel contracts and take direct action against hoarding or profiteering. The order also allows the Department of Transportation to direct fuel subsidies for public transport, reduce tolls, suspend aviation fees, and fast-track aid for individuals affected by the crisis.

The Philippines, which relies heavily on imported fuel, generates about 60 percent of its electricity from coal. Garin said the government is working with coal-fired power plants to increase generation temporarily, potentially starting April 1, to curb electricity rate hikes. Indonesia, a top coal supplier, has confirmed no restrictions on exports to the Philippines.

President Marcos previously announced a significant natural gas discovery near the Malampaya offshore field, which provides roughly 40 percent of power to Luzon, offering hope to extend the field’s life as it faces depletion in the coming years.

“This declaration will enable the government to implement coordinated measures to address risks posed by global energy supply disruptions and protect the domestic economy,” the executive order said.

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