Petronas plans to invest in Philippines LNG market 

Malaysia’s state-run energy giant Petronas is ready to enter the Philippine liquefied natural gas (LNG) market, considering investments in key infrastructure such as import terminals, according to a report by Philippine Star.

In an interview here on Tuesday, Petronas LNG Ltd. CEO Ezran Mahadzir affirmed the company’s commitment to support the Philippines in meeting rising power demand and advancing energy transition goals.

“The Philippines is a market that’s growing. You are retiring your coal plants, and as always, we are ready to discuss with any potential partners that require LNG,” he said.

Natural gas, which produces fewer carbon emissions than other fossil fuels, is considered a “transition fuel” that can help the Philippines shift away from coal while paving the way for wider adoption of renewable energy in the long term.

“With your economic growth comes energy growth, and we believe that gas is the fuel of choice. We keep that in mind in terms of how Petronas can actually offer our solutions for those requirements,” Mahadzir said.

He said Petronas is also interested in providing the Philippines with critical infrastructure, including regasification facilities and LNG terminals.

“If the solution that’s needed involves infrastructure, we are always open to assessing and to evaluating those kinds of opportunities as well,” Mahadzir said.

“So whatever requirements that the customer may want, that the buyer may want, we will obviously look at it, and we will obviously discuss it,” he said.

The Malaysian energy giant was said to have met with several Philippine firms to explore potential collaborations in the country’s LNG market.

Mahadzir noted, however, that for any partnership to thrive, it must be built on terms that deliver value to both sides.

“If we do land on something that is mutually beneficial and commercially viable, we could be partnering, subject to something that is good for both parties,” he emphasized.

Backed by 40 years of experience and expertise, Petronas currently operates in over 100 countries, positioning itself as a trusted LNG partner for a low-carbon future.

As an integrated energy player, the company has a global LNG production capacity of over 40 million tons per annum and has delivered supplies to over 55 receiving terminals worldwide.

In Southeast Asia alone, Petronas has delivered close to 200 LNG cargoes since 2017.

“This region is not just in our backyard; it is at the heart of our strategy. We understand its energy needs, and we are fully invested in supporting each country’s transition journey with LNG solutions that are adaptable to their evolving energy needs,” Mahadzir said.

In the Philippines, natural gas accounted for around 14 percent of the power generation mix in 2023, according to the Department of Energy.

Coal still held the largest share of the energy pie at 63 percent, with renewables making up only 22 percent.

And as part of its energy transition push, the Philippines aims to scale up the share of renewables in the power mix to 35 percent by 2030 and 50 percent by 2040.