JERA Co., Inc has recently finalized an agreement with the Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS), specifically focusing on system design and providing comprehensive support for the widespread adoption of Liquefied Natural Gas (LNG) in the Republic of the Philippines. This collaborative agreement comes on the heels of JERA being selected as the contracted party for the project, spearheading system design and other support initiatives aimed at propelling the adoption of LNG in the Philippines under the auspices of AOTS.

The Philippines is poised to witness an expansion in gas-fired thermal power generation, driven by the escalating demand for electricity in tandem with the nation's robust economic growth. Concurrently, as the country's locally produced natural gas is anticipated to dwindle, the urgent imperative of fully embracing LNG becomes a critical consideration, addressing both supply and demand dynamics.

Outlined within the agreement, JERA is committed to undertaking a range of activities related to assessing demand, evaluating environmental impact, and facilitating the development of national systems, including regulatory frameworks. The overarching objective is to support the seamless and comprehensive integration of LNG in the Philippines. Key aspects of JERA's responsibilities include:

Facilities Regulations Development: JERA will assist in the formulation of regulations governing the construction, operation, and maintenance of LNG storage and regasification terminals. This also extends to regulations concerning gas transportation and distribution systems, incorporating provisions for third-party access.

National Regulations Drafting: JERA will contribute its expertise to the drafting of national regulations specifically tailored for the Philippines, covering aspects related to LNG and natural gas.

Assessment of Natural Gas Demand: The agreement encompasses support for assessing the demand for natural gas and conducting feasibility studies for a power generation station/boiler situated in the Batangas Special Economic Zone.

Environmental Impact Assessment: JERA will undertake a life cycle assessment to comprehensively evaluate the environmental impact associated with the widespread adoption of natural gas.

Knowledge Sharing: As an integral part of the collaborative efforts, JERA is committed to sharing valuable insights and knowledge regarding LNG and natural gas with various stakeholders and relevant parties within the Philippines.

This strategic collaboration aligns with the overarching goal of advancing the adoption of LNG in the Philippines, particularly at a time when the nation is navigating a transition in its energy landscape. The partnership between JERA and AOTS signifies a concerted effort to address the imminent challenges and opportunities associated with the increased demand for power generation and the evolving dynamics of the natural gas market in the Philippines. As these initiatives unfold, they are poised to contribute significantly to the sustainable development and energy resilience of the Philippines.