Philippines declares ‘national energy emergency’ and boosts coal power as Iran war grinds on | Philippines

Philippine President Ferdinand Marcos declared a “national energy emergency” as a result of the Middle East war, which his administration said posed “an imminent danger of critically low energy supplies.”

The state of emergency, initially set to last a year, was declared just hours after the country’s energy minister said the Philippines planned to increase the output of coal-fired power plants to keep electricity costs low as the war has negatively affected gas shipments.

“In consideration of the ongoing conflict in the Middle East and the resulting imminent danger posed to the availability and stability of the country’s energy supply, a national energy emergency has been declared,” the executive order issued Tuesday evening said. It was said.

The decision gives the energy ministry the power to take direct action against hoarding or profiteering and make advance payments to secure fuel contracts.

Later on Wednesday, Philippine Ambassador to the United States Jose Manuel Romualdez told Reuters that it had emerged that the Philippines had asked for an exemption from the US state department to be able to buy oil from US-sanctioned countries (possibly including Iran and Venezuela) to guarantee its fuel supply. Asked if Washington had responded, Romualdez said the issue was “a work in progress.”

As of March 20, the government said the country had about 45 days of fuel supplies remaining and was trying to procure another 1 million barrels of oil to create a buffer.

Meanwhile, the migrant workers department has been asked to prepare for the possible rescue and evacuation of Filipinos in the Middle East. Approximately 2.4 million Filipinos live and work in the Middle East; about 31,000 of them are in Israel and 800 in Iran.

The government also began providing 5,000 pesos ($83) to scores of motorcycle taxi drivers and other public transportation workers across the country to help them cope with rising fuel prices. Free bus services were also provided to students and workers in selected cities.

“The declaration… to the government, [energy department] “and other relevant institutions are invited to implement responsive and coordinated measures within the framework of existing laws to address the risks posed by disruptions to global energy supplies and the domestic economy.”

The order also gives the transportation department the authority to redirect public transit fuel subsidies and reduce or suspend tolls and aviation fees, while also allowing it to expedite assistance to individuals in “crisis situations.”

The Philippines, one of the countries with the highest energy costs in the region, is heavily dependent on imported fuel to keep its power plants running.

The archipelagic country of 116 million people derives approximately 60% of its electricity production from coal.

Energy Minister Sharon Garin told reporters early Tuesday that the country will have to “temporarily” shift even further to coal as the cost of liquefied natural gas (LNG) rises.

The Philippines hopes to “maximize” its use of domestic coal while also retaining the option to increase coal purchases from top supplier Indonesia, the energy minister said.

“We talked to generation companies to check how much they can increase their production with coal-fired plants,” Garin said, calling it a “temporary measure” that could start as early as April 1.

“If we are successful in implementing this, we can at least reduce electricity increases due to conflicts in the Middle East,” he said.

Garin said Indonesia has assured the Philippines that it will not impose limits on coal orders. “As of today, there are no restrictions on our coal imports from Indonesia,” he said, adding that it may not be necessary to increase purchases.

In January, Marcos announced a “significant” natural gas discovery near the country’s rapidly depleting Malampaya offshore natural gas field.

It was hoped that the discovery would extend the life of the field, which provides about 40% of electricity to the main island of Luzon and is expected to dry up within a few years.