The Philippines needs $5 billion worth of investments in the next six years to develop its downstream natural gas industry.

Department of Energy (DoE) Secretary Angelo Reyes said this during the Philippine Economic Briefing where he discussed investment opportunities in the natural gas sector from 2009 to 2014.

"Our policy to diversify energy sources creates various potentials for investments, which include putting up of critical infrastructure to bring the energy to various end-users,” Reyes said.

He added that “among our top priority is the proposed gas transmission network in Luzon to bring the gas from the Malampaya to different economic zones and transports sectors in the area."

The Malampaya gas to power project located in Northwest Palawan supplies 2,700 megawatts of power to Luzon. The Malampaya consortium recently bid out its excess capacity of about 300 MW.

Reyes said some 423 kilometers of gas transmission pipeline and 504 square kilometers of gas distribution pipeline needs to be built to deliver natural gas for power generation, transmission and other commercial use.

These pipelines are from Batangas to Manila (Batman 1), Bataan to Manila (Batman 2), Calaca spurline (Catline), Rosario-Biñan (Ro-bin), Batangas-Cavite (Bat-Cave), Sucat-Malaya (Su-Ma) and the Edsa-Taft Loop (ET Loop).

The ET Loop will serve as the main distribution infrastructure network for compressed natural gas which would make gas available throughout major public transport routes in Metro Manila.

Reyes said that investments are also needed for 10,000 units of compressed natural gas vehicles, refiling stations, mother stations and conversion kits to spur the development of the natural gas industry for the transport sector. At present, only the Shell Group of Companies supplies CNG fuel to selected number of buses.

He urged investors to look at the liquified natural gas industry and consider investing the construction of LNG receiving terminals.