- Oil & Gas
- Market Overview
- Fitch Solutions
Philippines Oil & Gas Infrastructure Overview
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data are solely derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.
Refineries In The Philippines
|Location ||Project Name ||Capacity, b/d || |
|Status ||Construction - Completion ||Main Owner |
|Bataan ||Limay ||180,000 ||8,961,480 ||Active ||1961 ||Petron |
|Batangas ||Tabangao ||110,000 ||5,476,460 ||Closed ||1962 ||Shell |
|Bataan ||Limay Expansion ||120,000 ||5,974,320 ||Postponed ||- ||Petron |
|Source: Company data, Fitch Solutions |
As of June 2017, the Philippines held 24.8mn bbl of crude oil and refined products in inventory (an increase of 25% y-o-y), equivalent to about 56 days of supplies (37 days of crude oil and products in stock and 19 days in transit), according to statistics published by the Department of Energy.
The government also requires refiners to maintain stocks equivalent to 30 days of consumption, bulk marketers 15 days and liquefied petroleum gas players seven days under the broader Minimum Inventory Requirement programme. In September 2021 the government outlined plans to establish a Strategic Petroleum Reserve to lessen the country's vulnerability to global price fluctuations.
There are over 10,800 services stations across the Philippines. Petron has the largest retail network with about 2,400 service stations across the country (as well as 30 distribution terminals). Shell's Philippines subsidiary has the second largest network with more than 1,100 service stations. Chevron's subsidiary Caltex operates the third largest network of around 850 service stations. TotalEnergies Philippines runs a network of about 490 stations, while local private player Phoenix has about 325 stations in its network. Other players include Unioil, Seaoil, Jetti and PTT.
LNG Projects In The Philippines
|Location ||Project ||Capacity, bcm ||Capacity, mtpa ||Power Generation Capacity, MW ||Cost, USDbn ||Status ||Companies ||Start Date |
|Batangas ||Philippines LNG ||4.1 ||3.0 ||1,200 ||0.3 ||DOE Approved ||Atlantic Gulf & Pacific Company of Manila Inc. (AG&P) ||H1 2023 |
|Batangas ||Shell FSRU ||4.1 ||3.0 ||- ||0.05 ||DOE Approved ||Shell ||2022-2023 |
|Batangas ||Vires Energy FSRU ||- ||- ||506 ||- ||DOE Approved ||Vires Energy ||2022-2023 |
|Batangas ||Filipinas LNG I ||6.0 ||4.4 ||850 ||0.1 ||DOE Approved ||Excelerate Energy ||Q1 2023 |
|Batangas ||FGEN LNG Phase I ||7.2 ||5.3 ||1,200 ||1.3 ||DOE Approved ||First Gen Corporation, Tokyo Gas ||H2 2022-2024 |
|Batangas ||Filipinas LNG II ||- ||- ||850 ||- ||DOE Approved ||Excelerate Energy ||Q2 2024 |
|Quezon ||Pagbilao LNG ||4.1 ||3.0 ||650 ||0.1 ||DOE Approved ||Energy World Corporation ||2024 |
|Batangas ||Batangas Clean Energy LNG ||4.1 ||3.0 ||1,100 ||0.7 ||DOE Approved ||Batangas Clean Energy Inc. ||Q4 2025 |
|- ||- ||- ||- ||- ||- ||Proposed ||New Fortress Energy LLC ||- |
|Bataan, Batangas ||- ||- ||- ||- ||- ||Proposed ||PNOC, Lloyd Energy ||- |
|Batangas ||FGEN LNG Phase II ||2.7 ||2 ||- ||- ||Proposed ||First Gen Corporation, Tokyo Gas ||- |
|Mindanao ||Brunei-PNOC FSRU ||- ||- ||300 ||- ||Proposed ||Petroleum National Brunei, PNOC ||- |
|Cebu ||- ||- ||- ||600 ||1.02 ||Proposed ||SMC Global Power Holdings Corp. ||2027-2028 |
|Batangas ||Tanglawan LNG ||3 ||2.2 ||1,100 ||2 ||Suspended ||Tanglawan Philippines LNG (CNOOC, Phoenix Petroleum) ||2024-2025 |
|Source: Company data, Fitch Solutions |
Demand for gas in the Philippines has been growing steadily but has been constrained by limited downstream infrastructure and geographical obstacles. In June 2008, the Philippine National Oil Company launched the Natural Gas Infrastructure Development Plan, which calls for the expansion of the national gas grid, the construction of receiving LNG terminals and inter-island gas pipelines.
Two projects have already been initiated in the Central Luzon region, namely the 80-100km Batangas-Manila (BatMan 1) and the 140km Bataan-Manila network (BatMan 2). The BatMan 1 and 2 projects are also envisioned to be linked through an interconnector running from Bataan to Cavite (BatCave).
BatMan-1 Pipeline (Planned)
Several delays and bureaucratic hold-ups continue to stunt construction of the BatMan-1 gas pipeline, which will distribute imported LNG supplies to consumers in Batangas, Laguna, Cavite and Metro Manila.
As of June 2016, construction of the 121km pipeline was pending approval from the National Economic and Development Authority - Investment Coordination Committee due to certain revisions to the project's terms of reference.
Other Planned Pipelines
The following proposed pipelines have been earmarked by the DOE as 'critical infrastructure projects' and are mostly applicable to the Luzon area. No further details were available at the time of writing.
- Sucat-Fort Bonifacio Pipeline: 15km-long gas pipeline will transport gas to industrial and commercial end-users in the metropolis. Construction will begin in 2017.
- Sucat-Malaya (Su-Ma) Pipeline: 35km long, targeted for 2017.
- Sucat-Quirino Pipeline: 38km long, targeted for 2020.
- Metro Manila/Edsa-Taft Pipeline: 40km long, aiming for 2020.
- Subic Pipeline: From BatMan2 to Subic. 40km long, targeted 2021 start-up.
- Clark Pipeline: From BatMan2 to Clark. 25km long, targeting 2022 start-up.
- Bataan-Manila (BatMan 2) Pipeline: Linking the provinces of Bataan, Pampanga and Zambales to Manila. 140km long, targeting a 2020 start.
- Bataan-Cavite (BatCave) Gas Pipeline: 40km-long pipeline will serve as an interconnector to join BatMan 1 to BatMan 2. It is planned to start in 2022.
This report from Fitch Solutions Country Risk & Industry Research is a product of Fitch Solutions Group Ltd, UK Company registration number 08789939 ('FSG'). FSG is an affiliate of Fitch Ratings Inc. ('Fitch Ratings'). FSG is solely responsible for the content of this report, without any input from Fitch Ratings.