These are the indications set out in the revised 20-year Philippine Energy Plan (PEP) that the department has been working on.

Energy Secretary Angelo T. Reyes told media they will finalize the energy plan very soon; and he stressed that a significant component of that will be the proposed increase in the utilization of natural gas.

He noted that aside from 3,000 megawatts of greenfield capacity, the government will also pursue conversion of some 1,500 megawatts of existing capacity.

The energy chief previously apprised media that he wants conversion of coal-fired plants into natural gas. This was a departure from the oil-fired plants’ fuel shift use which was then the plan of the DoE.

Since proven reserves from the Malampaya natural gas field can only accommodate additional 300 to 500 megawatts of additional capacity, the option being eyed is to tap into liquefied natural gas.

Part of the country’s energy plan is to entice investment for LNG terminals which is being proposed for construction in Bataan.

As far as Malampaya gas is concerned, the consortium led by Shell Philippines Exploration B.V. indicated that they are just waiting for government’s signal on when the additional gas for power plants will be needed.

Reyes earlier noted that while they are crafting the energy plan, they still cannot say exactly when the new capacity will be needed for the Luzon grid.

"We are still studying," has been the energy chief’s proverbial answer when asked about the timing of new capacity’s commercial operations.

The government has been aggressively promoting some $ 5-billion worth of investments for natural gas facilities. For the power sector though, the leaning is not much on natural gas, but more on coal-fired plants.

Power companies are currently planning their expansion or greenfield capacities, but they also want to get definitive policy directions from the energy department.