Southeast Asia scrambles for LNG with gas fields tapping out

MANILA/TOKYO — Southeast Asian countries are set to expand imports of liquefied natural gas as the depletion of domestic gas reserves looms, setting the stage for a realignment in the global LNG market.

In the Philippines, major power utility First Gen begins construction on a $300 million offshore LNG intake terminal this month near Batangas, a port city in the southern portion of the main island of Luzon. The large-scale project is the first of its kind for the nation.

“This is particularly important given the declining supply of the Malampaya resource, which the Philippines relies on for natural gas,” said Jon Russell, chief commercial officer at First Gen, in a written interview. Malampaya, the Philippines’ sole gas field, is expected to run out by 2027.

First Gen will also redevelop an existing jetty into a multipurpose facility that will connect to the floating unit via an…