ADI analyzed the transition from domestic gas production to LNG imports in the Philippines to address energy security and decarbonization goals. The study benchmarked the levelized cost of electricity (LCOE) for gas-fired combined-cycle plants against coal-based generation, accounting for the environmental costs of emissions. Modeled delivered ex-ship (DES) costs from U.S. export hubs to demonstrate the viability of Henry Hub-indexed pricing for regional price stability.
The client
International development agency
The situation
Approaching depletion of domestic gas reserves creating a critical need for regasification infrastructure and fuel procurement strategies.
ADI’s contributions
Comparative LCOE modeling
ADI demonstrated that gas-based power generation offers significantly lower lifecycle costs than coal when capture technologies are required.
Pricing indexation analysis
Comparison of oil-linked versus gas-linked pricing provided a roadmap for mitigating energy price volatility in the Philippines.
Infrastructure feasibility assessment
Evaluation of FSRU versus onshore terminal options identified the most flexible and capital-efficient path for new importers.
Environmental impact analysis
Quantification of CO2 and nitrous oxide reductions supported the alignment of energy policy with Paris Agreement commitments.
Key outcomes
- Strategic framework for prioritizing gas-fired power generation to complement variable renewable energy and reduce national carbon intensity.
More insights
How will the 2026 mid-term elections impact energy markets?
Democrats won control of the House and the Senate on November 3 and flipped the governorships of Texas, Georgia, Ohio, Nevada, and Iowa. Energy was a central issue in many of these races, particularly the cost of electricity and the growth of data centers. Power prices have risen in many states in recent years. Data […]
Newsletter: Gas prices, Permian bottlenecks, and midstream growth
In the November 2026 edition of the ADI Newsletter, ADI examines the implications of EQT’s acquisition of Range Resources and what the deal could mean for natural gas markets in Appalachia and at the Henry Hub. The newsletter also explores the growing role of oil and gas capabilities in supporting the energy transition, from geothermal […]
Permian’s next bottleneck is basin connectivity
As ADI discussed recently in Trends shaping the U.S. midstream outlook, rising LNG exports, growing power demand from AI data centers, and continued oil and gas production growth are driving a new wave of midstream investment. Much of the industry’s recent focus has been on relieving Permian gas takeaway constraints through projects such as Kinder Morgan’s […]