New Delhi, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Philippines petroleum industry revenue was valued at US$ 14.62 billion in 2023 and is estimated to reach US$ 21.54 billion by 2032 at a CAGR of 4.4% during the forecast period 2024-2032.
The opportunity landscape of the Philippine petroleum industry market is shaped by robust demand growth, ongoing infrastructure development, and exploration prospects. Current petroleum demand stands at approximately 471,403 barrels of petroleum per day, driven by economic expansion, industrial activities, and an increasing population. Domestic production remains limited, with crude oil output around 23,000 barrels per day from fields like Galoc. This significant gap between supply and demand presents opportunities for investment in exploration and production activities. The government’s initiatives to offer new petroleum service contracts and incentives aim to attract both local and foreign investors to tap into estimated reserves of over 1 billion barrels of oil equivalent, particularly in underexplored offshore areas.
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Active players in the petroleum industry market include major companies such as Petron Corporation, Shell Philippines, and Chevron Philippines, which operate refining, importation, and distribution facilities. Petron operates the country's largest refinery in Bataan, while Shell and Chevron focus on import terminals and retail networks. Independent oil companies and new entrants are expanding their presence, contributing to a competitive market landscape. Active consumers encompass the transportation sector, industrial manufacturers, power generation companies, and households using LPG. The transportation sector alone accounts for over 80 million barrels of petroleum consumption annually, highlighting significant market potential for suppliers and service providers.
The import and export scenario of the Philippines petroleum industry market is characterized by substantial importation to meet domestic demand. The Philippines imports approximately 170 million barrels of crude oil and finished petroleum products annually from countries like Saudi Arabia and Kuwait. The lack of significant export activities underscores the reliance on imports and highlights opportunities for domestic production to replace imports. Infrastructure developments, such as the expansion of storage facilities increasing capacity to over 30 million barrels and pipeline networks totaling over 5,000 kilometers, aim to improve distribution efficiency. The implementation of cleaner fuel standards has opened avenues for investments in refining technologies and the introduction of alternative fuels. Overall, the Philippine petroleum industry offers substantial opportunities for growth in exploration, production, refining, and distribution, driven by demand growth and supportive government policies.
Key Findings in Philippines Petroleum Industry Market
| Market Forecast (2032) | US$ 21.54 billion |
| CAGR | 4.4% |
| By Form | Crude Oil (90.6%) |
| By Application | Transportation Fuel (72.3%) |
| By End Users | Transportation (70.4%) |
| By Products | Fuel (66.3%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Surging Demand for Natural Gas in the Philippines: A New Energy Frontier
The natural gas sector is witnessing robust growth in the Philippines' petroleum industry market, driven by the country's efforts to diversify its energy mix and enhance energy security. In 2023, the Philippines produced approximately 3.5 billion cubic meters of natural gas, primarily from the Malampaya gas field, the nation's largest natural gas reserve. However, with the Malampaya field nearing depletion, consumption, which stands at around 5 billion cubic meters annually, outpaces domestic production, leading to increased imports to meet the rising demand.
To bridge the supply gap, the Philippines began importing liquefied natural gas (LNG) in 2023, marking a significant shift in its energy sourcing strategy in the petroleum industry market. The country imported its first LNG cargo of about 137,000 cubic meters, primarily from suppliers in Australia and Qatar. The government has approved several LNG terminal projects to facilitate these imports, aiming to secure a steady supply. The shift towards natural gas is propelled by key factors such as the growing power generation needs, with natural gas-fired power plants accounting for about 3,500 megawatts of installed capacity, and the push for cleaner energy sources to reduce greenhouse gas emissions.
The higher demand for natural gas over other petroleum products is driven by its efficiency and environmental benefits. Natural gas burns cleaner than crude oil and coal, emitting fewer pollutants and greenhouse gases, which aligns with the Philippines' commitment to international climate agreements. Also, it has been found in the petroleum industry market that the industrial sector favors natural gas for its cost-effectiveness and reliability, especially in power generation and manufacturing. Additionally, government policies and incentives support the development of natural gas infrastructure, encouraging investments in LNG terminals and pipelines. The rising urbanization and the need for stable, cleaner energy sources further accelerate the demand, positioning natural gas as a vital component of the Philippines' energy future.
Pharma and Cosmetics Demand Ignites Philippine Petroleum Industry's Fastest Growth Segment
The pharmaceutical and cosmetics sectors in the Philippines petroleum industry market are experiencing remarkable growth, propelling the demand for petroleum-derived products used in their manufacturing processes. In 2023, the Philippine pharmaceutical market was estimated to be worth over $7 billion, reflecting the country's increasing focus on healthcare accessibility and medicinal availability. Concurrently, the cosmetics industry reached a market value approaching $5 billion, driven by a burgeoning middle class and heightened consumer spending on personal care products. The surge in demand for items such as medicinal tablets, creams, lotions, and beauty products necessitates higher consumption of petroleum-based ingredients like paraffin wax, petrolatum, and mineral oils.
Major petroleum products heavily utilized in the pharmaceutical and cosmetics industries include petrochemicals such as propylene glycol, glycerin, and various hydrocarbons used as solvents, binders, and emollients. In 2023, the Philippines imported approximately 600,000 metric tons of petrochemical feedstocks specifically for pharmaceutical and cosmetic manufacturing. This growth in the petroleum industry market is fueled by increased investments in local production facilities, with over $1.2 billion invested in new pharmaceutical manufacturing plants and research and development centers in the past year. Additionally, the government's implementation of the Universal Health Care Act amplifies access to medicines, thereby boosting pharmaceutical production. The cosmetics industry's expansion is also propelled by the popularity of K-beauty and J-beauty trends, with over 2,500 new cosmetic products launched in the Philippine market in 2023 alone.
Several factors contribute to this strong growth, including demographic shifts such as a youthful population with a median age of 25.7 years, leading to higher consumption of cosmetics and personal care products in the petroleum industry market. The rise in health consciousness post-pandemic has increased the demand for pharmaceuticals, including over-the-counter medicines and supplements, with more than 110 million vaccine doses administered in the country by 2023. E-commerce platforms have expanded market reach, with online sales of pharmaceuticals and cosmetics exceeding $1.8 billion in 2023. The consumption in this domain is expected to continue its upward trajectory, with the petrochemical industry planning to increase domestic production capacity by 250,000 metric tons to meet the rising demand from pharmaceutical and cosmetics manufacturers.
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Electric Power Surge: Unveiling the Fastest-Growing Petroleum Consumer in the Philippines Petroleum Industry Market
Despite the transportation sector's dominance, the electric power sector in the Philippines is projected to grow at the fastest CAGR of 5.9%. This growth is propelled by the country's increasing energy demand, driven by economic development and population growth. As of 2023, the Philippines' installed power capacity stands at approximately 25,000 megawatts, yet the demand continues to outpace supply, leading to frequent power outages in various regions.
Fuel oil and diesel are the major petroleum products used heavily in electric power production. These fuels are essential for operating oil-fired power plants and emergency generators. Currently, there are over 1,500 megawatts of oil-fired power plants in operation, significantly higher than the previous year's capacity. The rise in industrial activities—particularly in manufacturing hubs like Calabarzon and Central Luzon—has increased reliance on petroleum-powered electricity generation to avoid disruptions.
Several factors drive this growing demand in the petroleum industry market. The limited availability of natural gas, due to the depletion of the Malampaya gas field which supplies around 3,200 megawatts of capacity, has forced a shift towards petroleum products. Additionally, delays in the development of renewable energy projects have necessitated the use of more reliable and immediately deployable petroleum-based power sources. The government's push for rural electrification, aiming to achieve 100% electrification from the current 96%, requires the deployment of diesel generators in remote areas, further boosting petroleum consumption.
In terms of consumption, the electric power sector used approximately 10 million barrels of petroleum products in 2023, an increase of 1 million barrels from the previous year. The National Power Corporation's Small Power Utilities Group operates over 300 diesel power plants across off-grid islands, contributing to this consumption. Moreover, private sector investments in backup generators have surged, with over 600 megawatts of new capacity installed to mitigate power supply instability. These developments highlight the significant and growing role of petroleum products in the Philippines' electric power sector.
Philippines Petroleum Market Key Players
- Alcorn (Production) Philippines, Inc.
- Alsons Consolidated Resources, Inc
- Altisima Energy, Inc
- Anglo-Philippine Oil & Mining Corporation
- Coplex Resources Nl
- Forum Exploration, Inc.
- Nido Petroleum Philippines Pty. Ltd.
- Novus Petroleum Limited
Key Segmentation Overview:
By Form:
- Natural Gas
- Condensate
- Crude Oil
By Product:
- Fuel
- Butane
- Diesel fuel
- Fuel oil
- Gasoline
- Kerosene
- Liquefied petroleum gas
- Liquefied natural gas
- Propane
- Microcrystalline wax
- Napalm
- Naphthalene
- Paraffin wax
- Petroleum jelly
- Petroleum wax
- Refined asphalt
- Refined bitumen
By Application:
- Transportation fuels
- Fuel oils
- Heating
- Electricity generation
- Asphalt and road oil
- Agriculture
- Pharmaceuticals and Cosmetics
- Feedstocks
- Chemicals
- Plastics
- Synthetic materials
By End User:
- Industrial
- Residential
- Commercial
- Electric Power
- Transportation
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