Cancellation of a Brown liquefied natural gas terminal, a win for Verde Island Passage, says environmental advocates

Environmental group advocate Protect Verde Island Passage (Protect VIP) on Monday welcomed [MV1] the cancellation of a proposed liquefied natural gas (LNG) import terminal in Batangas City, which would have contributed to coastal and near-shore ecosystem degradation and increased shipping activities in the highly biodiverse marine corridor.

In a statement, it said that “citing ‘recent industry developments’, A Brown Co. subsidiary Vires Energy Corporation on Friday confirmed its withdrawal of the notice to proceed issued by the Department of Energy to the project over three years ago, with the company opting instead for third party access to LNG or natural gas supply for an adjacent power plant it is also looking to build.”

“This cancellation is a win for the many fisherfolks, members of the faith community, and stewards of Creation decrying the impacts of LNG on communities and our environment. There is now one project less in the gas fleet bringing destruction to our Amazon of the oceans. With this move, A Brown Co. also confirmed just how high-risk an investment LNG really is. All that is still backing the LNG buildout in the country should rethink their business decisions,” said Fr. Edwin Gariguez, Lead Convenor of Protect VIP. 

But the group said it is alarmed over A Brown Co.'s plan to double the capacity of its proposed LNG power plant project from the original 450 MW to 900 MW. The project will also be converted into an onshore facility, it added.

“We’re dismayed that A Brown and Vires are keeping their ears shut to the rejection by fisherfolk and other sectors of gas and LNG. When these power plants are built, the coasts that serve as a spawning ground for fish are destroyed; the very large tankers carrying LNG are also a cause for concern. Many families will also be robbed of the only livelihood they know if they are pushed to leave the coasts because of these projects,”  said Restituto Bobadilla of Bukluran ng mga Mangingisda (fishers group) in Batangas City.

The revised project proposition should be held against the strictest environmental standards by the Department of Environment and Natural Resources (DENR), according to Protect VIP.

This includes a recent Court of Appeals decision to a continuing mandamus petition filed by Protect VIP, mandating the Department to finally issue rules under the Clean Water Act on restricting sources of pollution in bodies of water found to have alarming levels of pollution, as is the case for parts of the VIP.  

“We urge the DENR to ensure the most rigorous environmental compliance by A Brown Co., especially with the significantly different nature and capacity of the project from when its compliance certificate was issued in 2017,” said Gerry Arances, Executive Director of sustainability think-tank Center for Energy, Ecology, and Development (CEED).

 He added that at the same time, they look forward to the long overdue issuance of rules on non-attainment areas. “The VIP and other bodies of water across the country have been suffering from unchecked pollution from gas and other environmentally critical projects for far too long.”

Arances said, “A Brown Co.’s now onshore proposed power plant is set to be located in an energy hub being developed by real estate and energy firm Abacore, which recently drew heat after an investigative piece from the Associated Press exposed conflict of interest issues over Batangas Governor Hermilando Mandanas’s stake in the company - a matter that "needs to be investigated urgently and thoroughly.”