The Lantau Group Presents to the Energy Policy and Development Program at the University of Philippines

Mike Thomas, Partner at The Lantau Group, discussed the changing economics of inter-fuel competition in Southeast Asia in a lecture entitled ‘The Choice of Fuel’, given to the Energy Policy and Development Program, in Manila, on 17 August. Through his lecture, Mike showed that diverse fuel mixes need not give flexibility and that flexibility can be constricted by specific contracts and regulation. Citing three main factors driving the future of gas, solar and coal power, Mike showed how recent increases in LNG supply have seen the gas-coal price differential narrow, enabling gas to become economic over a greater range of scenarios despite the increased competition from solar. The challenge for gas is no longer simply one of pricing: key is finding a regulatory and contractual arrangement that facilitates the necessary cost and risk sharing that can unlock both the value of flexibility and the flexibility of diversity. The University of Philippine’s Energy Policy and Development Program brings together energy experts and practitioners from across the Philippines, providing a neutral platform for the exchange of ideas on critical energy policy issues.