Foreign firms eye USD 43B in PH energy projects

The Philippine energy sector is drawing significant attention from foreign investors, with potential investments reaching up to USD 43 billion (about PHP 2.5 trillion), according to the Department of Energy (DOE).

Energy Secretary Sharon Garin confirmed the figure during a Palace press briefing on Tuesday, citing growing interest from countries such as Australia, Israel, the United States, and the United Arab Emirates.

“We have many possible investors,” Garin said.

“For example, we have a company from Australia, from Israel, from the US, UAE—so different companies, different countries.”

Garin attributed the surge in foreign interest to the Philippines’ favorable investment climate and strong policy direction under the current administration.

“I think nakita nila iyong magandang investment opportunity, not just the opportunity, pero iyong climate natin na it’s time for them to come in,” she said.

“So nakita nila na we have the right policies and leadership para mag-invest ng USD 43 billion.”

The prospective deals span upstream energy exploration projects, which include oil and gas development and other renewable energy initiatives across the country.

Garin also addressed the complexities surrounding joint exploration ventures, particularly in geopolitically sensitive areas such as the West Philippine Sea.

“It’s not about who is exploring or where we are exploring,” she said.

“Mahirap kang mag-explore, mag-invest ka ng USD 1 billion kung medyo disputed ang area. So, on the safe side, we focus on areas that are not contested.”

Although the government has offered investment opportunities in areas like Reed Bank, Garin noted that security concerns have limited investor interest.

“We have offered those areas, but there are no takers,” she said.

“So, I don’t think the investors would risk it also. Mayroon nga tayong existing din na contract na nandoon na, on that line, but it hasn’t been explored yet because there are still uncertainties.”

The DOE is focusing on uncontested sites for exploration to provide a stable environment for long-term energy investments and to ensure national energy security.

The interest from international investors comes amid a renewed government push to boost domestic energy supply and reduce reliance on imports, especially for oil and gas.

The Philippines remains heavily dependent on imported fuel, with over 90 percent of its oil requirements sourced from abroad, according to DOE data.

Ongoing energy reforms and incentives under the updated implementing rules of the Renewable Energy Act and the Philippine Energy Plan 2023–2050 aim to attract foreign capital and support the country’s transition to a more secure and sustainable energy future.