Firms from the United Kingdom are committed to con-tinue investing in the Philippines, according to the British ambassador to the Philippines, who also disclosed plans of foreign retail brands to enter the country this year.
Speaking to members of the media during the GREAT British Festival at the Bonifacio High Street on Friday, British envoy Asif Ahmad expressed optimism that two-way trade between the Philippines and the UK would remain robust.
“We’re seeing more brands and franchises in the Philippines. Two [from the UK] would enter the country—one in homeware and another in food and beverage,” Ahmad said.
While he declined to identify the supermarket brand, he said that the British firm will partner with a local company to distribute the products. Ahmad said the entry of one of two retail brands would be announced in May.
In the energy sector, Ahmad said oil giant Shell is willing to invest in a liquefied natural-gas (LNG) terminal, but is in the process of determining reception of the market to LNG as a power source.
“What the country desperately needs, and this is the opportunity now, is gas. It’s a good time for the Philippines to go into the market, as the prices have gone soft. The country will lose the opportunity when the market tightens up again because you have countries like [South] Korea who are massive importers and China,” he said.
LNG is a natural gas that has been converted into liquid for easier storage and transportation. Upon reaching its destination, LNG is gassified, so it can be distributed through pipelines as natural gas.
Shell is now talking to the government and power generators to see if conditions are right in the Philippines to pursue the LNG import terminal as such an undertaking will require a long-term investment.
The interest of Shell to build an LNG facility near its refinery in Tabangao, Batangas, has been floated as early as 2012, following a memorandum of agreement it signed with the Department of Energy (DOE).
Ahmad said the British oil giant needs to be assured that no move or regulation at the local government level would impede development of the project in the middle of construction.
As Shell’s project would require millions of dollars in investments, Ahmad said the “right environment and conditions” need to be in place before the company decides to push through with its plans.
“It’s a lot of things, there’s the certainty of contracts and the pricing regime, and of course, the certainty of power producer to accept gas as a choice, these are all part of discussions,” he said. Earlier, Pilipinas Shell Petroleum Corp. urged the government to craft policies that will encourage investments in the LNG sector.