Senior Official on Energy (SOE) Leader, Undersecretary Loreta G. Ayson, CESO I makes a presentation on Challenges and Measures to Facilitate LNG Trade and Investment in Asia-Pacific Region and Brief Update on Natural Gas Development in the Philippines during the 11th APEC Energy Ministerial Meeting (EMM 11) held on September 2-3, 2014 in Beijing, China

The Philippines was one of the discussants during the 11th APEC Ministerial Meeting (EMM 11) held on September 2-3, 2014 in Beijing, China. During the session on Energy Trade and Investment focusing on LNG, Undersecretary Loreta G. Ayson, CESO I shared an update on the country’s natural gas industry and the challenges to commercialize LNG. She stated that "we are focusing our efforts in expanding green energy sources in the total energy supply of the country; one of which includes the establishment of an expanded natural gas use in different parts of the Philippines and increasing the share of natural gas in the energy mix through intensified investment promotion activities in the construction and operation of strategic natural gas infrastructure projects such as pipelines and LNG terminals". Likewise, the Undersecretary took the opportunity to invite the Ministers to the 12th APEC Energy Ministerial Meeting to be held in Cebu as part of the APEC Hosting of the Philippines in 2015.

An important highlight of the EMM 11, was the Beijing Declaration under the theme "Joining Hands Toward Sustainable Energy Development in the Asia-Pacific Region." The Declaration emphasized the importance of cooperation among member economies of APEC in responding to the twin challenges of energy security and sustainable development. Underlying these challenges are the use of clean energy, facilitation of energy investment and trade and the promotion of energy efficiency. With Asia Pacific being viewed as the emerging center of world energy demand, member economies are encouraged to strengthen mechanisms to improve interconnectivity arrangements in the region by promoting infrastructure development that include trans-border oil and gas networks, power grids, LNG terminals, smart grids and distributed energy systems. Acknowledging the emergence of the liquefied natural gas (LNG) in the global and regional fuel mix, the Ministers instructed the Energy Working Group to launch the APEC LNG Trade Facilitation Initiative which will encourage dialogue, develop public-private partnerships and support LNG market-based pricing mechanisms to boost the creation of robust APEC natural gas markets.

Likewise, notwithstanding the continuing use of fossil fuels in the region, member economies reaffirm the importance of deploying and applying highly efficient technologies in coal-fired power plants and the pursuit of scientific solutions to mitigate environmental impacts of non-conventional oil and gas development.

The use of clean energy remains a priority among APEC member economies subscribing to the aspirational goal of "doubling the share of renewables in the APEC energy mix, including on the power generation, from 2010 levels by 2030”. On energy efficiency and conservation, the Ministers reaffirmed the aspirational goals set out in 2011 APEC leaders’ Declaration to reduce APEC’s aggregate energy intensity by 45% from 2005 levels by 2035 and committed to work together to attain this target. On the other hand, member economies who are interested on the use of nuclear energy for power generation are encouraged to exchange experience and best practices and pursue practical cooperation in areas that include nuclear safety performance, emergency response and preparedness mechanisms.

Another highlight of China’s EMM 11 hosting was the launch of the APEC Sustainable Energy Center (APSEC) which will be housed at the Tianjin University in Beijing, China. EMM11 was capped by technical tours of the State Grid Corporation of China which constructs and operates power grids as its core business (one of its overseas assets is the National Grid Corporation of the Philippines); the China Guodian Corporation, one of the five largest integrated power generation corporations in China and the State Nuclear Power Technology Corporation which is the leading company of China’s Third Generation nuclear power technology introduction, absorption and innovation.

The Philippine delegation also attended the China International Cooperation Forum on "Promoting International Energy Cooperation Beyond Differences in Energy Culture" organized by Renmin University on the occasion of APEC China 2014, Among the topics discussed were: Energy Culture and Differences of APEC Economies, Energy Supply Security Situation, Regional Cooperation and Mechanisms for Dialogue; the Role of Government to Promote Investments and the Role of Public Private Partnership in Improving Energy Infrastructure. As one of the Forum’s Panelists, the Undersecretary presented the various investment opportunities in the Philippine energy sector and highlighted the role of PPP in the realization of big ticket projects in the Philippines such as natural gas pipelines. She said: "Considering the huge investment required, we need partners in the development and exploration of our natural resources and infusion of the required capital investments."

The Philippine delegation was composed of Undersecretary Loreta G. Ayson, CESO I, Assistant Director Carmencita A. Bariso of Energy Policy and Planning Bureau, Assistant Director Marissa P. Cerezo of Renewable Energy Management Bureau, Ms. Lisa S. Go, Chief of Investment Promotion Office, and Mr. William G. Quinto, International Cooperation Supervisor. Joining the delegation were officials from the Philippine Embassy post in Beijing, namely: Deputy Chief of Mission, Ms. Evangeline Ong Jimenez-Ducrocq; First Secretary, Mr. Ivan Frank M. Olea, and Economic Attaché Katheryne Wendy S. Cruz.