NATURAL GAS FUEL SUBSTITUTION OF OIL FIRED BOILERS AND FURNACES IN MAJOR INDUSTRIES OF LUZON
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Abstract
In order for the Philippines reduce its growing dependence forecast on fossil fuels, to meet ambitious targets for reliable economic supplies to propel economic progress and to alleviate the growing green house gas emission level in the Philippines, the energy sector needs another possible effective and sound policy program which will tap the utilization of the three (3) trillion cubic feet of gas of the Malampaya gas field besides the power generation market. Thus, this paper explores the opportunities for industrial companies with existing oil-fired Boilers and Furnaces to switch fuel to natural gas. Existence of barriers such as lack of available current end-use studies for commercial and industrial energy demand and the factors that influence the possible acceptance of the industry with this fuel will be addressed by this study. Recent announcement of the government to subsidies the price of natural gas by supplying CNG at half the price of diesel and other tax incentives are some of the possible testing factors to be ask in the survey of industrial companies which has the largest influence to these companies to switch fuel.
A. A. Introduction
The trailblazing Malampaya Deep Water Gas-to-Power project represents the largest and most significant industrial investment in the history of the Philippines (www.malampaya.com). It heralds the birth of the country's natural gas industry that will enable the supply of clean, environment-friendly fuel slated to provide 2,700 megawatts of power to Luzon for a period of 20 years starting January 2002...