The Philippine government does not plan to invest in new liquefied natural gas (LNG) regasification terminals before the end of the decade. The decision is based on a utilisation rate of just 60% at existing facilities, according to Energy Secretary Sharon Garin. Two terminals, both located on the island of Luzon, currently meet the country’s LNG needs.
While interest in LNG continues to grow, the Department of Energy is redirecting public resources to underserved regions. “We may eventually install a regasification terminal in the Visayas or in Mindanao,” Garin said, referring to the country’s central and southern island groups. Authorities have ruled out any new projects in Luzon for now, as the region is already covered by existing infrastructure.
Excess capacity and island logistics
The country’s fragmented geography makes the construction of interconnected pipeline networks challenging, leading the government to explore alternative solutions. These include small-scale LNG power plants with customised logistical setups. Although LNG terminal development is currently unregulated, the administration is favouring targeted territorial planning over an uncoordinated liberal approach.
In 2023, the Philippines imported approximately 0.6 million tonnes of LNG. This first year of importation was followed by an increase in volume, reaching 1.58 million tonnes in 2025, according to data from analytics firm Kpler. Despite growing demand, it remains below available capacity, limiting further public investment in the sector.
National coordination and long-term investment
Some companies are calling for a consolidation of gas needs at the national level to support long-term supply contracts. “We need to aggregate our LNG requirements as a country,” said Jay Joel L. Soriano, Vice President of Strategy and Planning at First Gen Corporation. He called for stronger government involvement to make demand more visible and credible to suppliers.
So far, First Gen has sourced LNG exclusively from the spot market. The company is open to longer-term commitments if its electricity supply contracts are renewed. LNGPH, a company integrating South Premiere Power Corporation and Excellent Energy Resources Inc, is currently the only player in the country with a long-term supply contract, signed with energy trading firm Vitol.
