TAGUIG CITY, Metro Manila—The PNOC is setting its sights on small-scale liquefied natural gas (ssLNG) to bring cleaner and more reliable power to geographically isolated and disadvantaged areas (GIDA). This strategic direction took center stage during the 15th session of Ignition Talks, PNOC’s knowledge-sharing forum held on April 4, 2025.
Energy analyst and financial economist Dr. Ricardo G. Barcelona led the session, presenting how ssLNG can overcome logistical and economic barriers that have long hindered energy access in off-grid communities. He explained that while traditional large-scale LNG infrastructure remains viable primarily in Luzon, ssLNG offers a scalable and cost-effective alternative for island provinces and remote regions through modular solutions, simplified logistics, and quicker deployment timelines.
Dr. Barcelona also highlighted how the energy sector’s competitive landscape is shifting. He noted that the energy mix of the future must be flexible and secure, with natural gas providing an advantage over traditional sources. This approach can help reduce diesel use in the operations of the National Power Corporation (NPC)-Small Power Utilities Group, particularly in the Visayas, Mindanao, and remote parts of Luzon, lowering fuel costs and carbon emissions.
Focusing on the potential of small-scale solutions, he explained how even modest investments can have a large impact when strategically implemented. ssLNG can bring energy to underserved markets by reducing infrastructure needs and enabling multiple-site deployment. He also encouraged PNOC to develop a pool of in-house experts in the said field, and called for stronger public-private partnerships to energize economic zones and industrial parks through energy conversion and infrastructure development.
During the closing session, PNOC President and CEO Oliver B. Butalid reiterated the company’s evolving identity. He pointed out the company’s vision to be a niche player in the ssLNG logistics business in remote areas, help ease the burden of government subsidies for island electrification, and enable government buildings to reduce energy consumption through sustainable solutions. He also emphasized the need to balance current revenue streams with a more forward-looking and impactful business model. To prepare for this shift, the company will soon launch an “Energy 101” program to equip its associates with a deeper understanding of the technical, financial, and regulatory aspects of the energy sector.
Dr. Barcelona ended his discussion by highlighting PNOC’s role in opening new markets where private sector investment remains limited. He said that while these initial efforts may appear missionary in nature, they are essential for future mainstream viability.
“PNOC is well positioned because no private company would probably want to be involved in some of the missionary markets that NPC is involved with. That catalytic function belongs to the government,” he remarked.
