LNG Investment Rests Upon Price Clarity And Infrastructure

摘要

BMI View: The prospect of importing gas is looking increasingly unavoidable for the Philippines, as gas demand rises on the back of government-driven power and transport policies while at the same time the country's key gas field, Malampaya, starts to run dry. The build-up of LNG regasification terminals will be needed to facilitate imports to the archipelago. However, the biggest obstacle to the realisation of such terminals lies not in a lack of investor interest but uncertainty regarding gas prices and the availability of gas infrastructure. We highlight that delays in establishing infrastructure and a suitable gas-pricing scheme could suppress real demand and pose a downside risk to our gas demand forecast.