Subic Bay, Philippines

Build the Energy Gateway. Set the Asian Gas Price.

Subic Bay sits at the center of the emerging Luzon economic corridor — a concentration of data centers, critical-minerals refining, semiconductor facilities, and advanced manufacturing that demands firm, dispatchable power at scale. Our vision: anchor that corridor with open-access LNG infrastructure, 10–15 GW of flexible generation, and the first cleared Asian gas forward curve — transforming Subic Bay from a strategic asset into the price-discovery and energy-security hub for the Philippines and wider Asia.

10–15 GWPhysical supply
6–11 mtpaPotential U.S. LNG demand
$30MFirst decision — market foundation

Energy security · Renewable integration · Market infrastructure · Strategic resilience

The Need

The Constraint Is Firm Power.

The Economic Security Zone at Subic Bay requires approximately 3+ GW of firm power to support its industrial and strategic mandate. Luzon faces tightening peak-power constraints as demand accelerates.

Data centers, critical-minerals refining, semiconductor ATP facilities, and advanced manufacturing all require continuous, reliable generation that intermittent renewables alone cannot provide. The grid needs firm capacity that can dispatch on demand.

Coal retirement commitments create an additional structural gap. The Philippines must replace retiring capacity while simultaneously meeting new industrial load — a dual challenge that requires a coordinated infrastructure response.

A solar-heavy grid needs flexible ramping capacity — not only efficient baseload generation.

Demand Scenarios — GW

Indicative ranges across planning cases

ESZ, Data Centers, Minerals, Semiconductor ATP7–10 GW
Luzon Peak Growth / Residual Firm Need13–18 GW
Coal Replacement5–6 GW
Terminal Economics9–15 GW
Central Planning Case12 GW
0 GW5 GW10 GW15 GW20 GW
The Plan

A Market-First Infrastructure Strategy.

Five phases from market formation to full hub — each phase de-risks the next. Capital is deployed only as market signals confirm demand.

Phase 0

Market

Extend existing trading platform to gas and LNG. Establish a single-member clearinghouse. Contracts trade at existing Batangas delivery points. No construction required. Trading to include Subic once the terminal receives FID.

  • No construction required
  • Contracts at Batangas delivery points
  • Single-member clearinghouse
  • Trading platform extension
Phase Capital$30M
Cumulative$30M

"The first decision is not the terminal. It is the market."

Market Infrastructure

From LNG Import Terminal to Asian Delivery Point.

The project combines open-access physical delivery, standardized contracts, a traded forward curve, and cleared derivatives — the full architecture of a functioning commodity market.

Market Architecture Flow

From physical supply to cleared financial instruments

PHYSICAL SUPPLYMARKET INFRASTRUCTUREDELIVERY POINTPHYSICAL OFFTAKEU.S. LNGSupplyTradedContractsForwardCurveClearedDerivativesPhysicalDelivery PointIndustrialBuyersPowerGenerationLuzonPipeline

Physical and Financial Convergence

Existing Batangas terminals serve as initial Philippines DES delivery points, allowing contracts to trade before Subic construction is complete. The market can form ahead of the infrastructure — reducing development risk and establishing price discovery early.

Open-access terminal rules ensure that no single participant can foreclose competition. Standardized contracts create the liquidity foundation for a forward curve. Cleared settlement eliminates bilateral counterparty risk.

What Henry Hub and Cushing Have

  • Physical convergence at a defined delivery point
  • Open access — no single owner controls throughput
  • Standardized products and contract specifications
  • Cleared settlement through a central counterparty
  • Long-dated forward curve enabling hedging

Asia has price assessments, but lacks a fully developed long-dated gas delivery point. Subic is designed to close that gap.

Renewable Integration

Flexible Gas Enables More Renewables.

24-Hour Grid Dispatch

Solar peaks midday; flexible gas ramps down then rises in the evening

12am6am12pm6pm12amOutput %SolarFlexible Gas

Flexible gas generation is the enabling technology for renewable scale-up. By ramping down during peak solar hours and ramping up in the evening, gas plants reduce curtailment and allow more solar and wind to be built and dispatched.

The terminal is sized for peak send-out capacity, not annual fuel volume — ensuring the system can respond to demand spikes and renewable shortfalls without constraint.

~80%Combined-cycle
~20%Fast-ramp peaking
2.27 Bcf/dPeak send-out at 15 GW
Capital

Capital Follows a Credible Curve.

2027
$30MPaid-in

Market formation, trading platform, clearinghouse establishment, regulatory engagement.

2028–29
$80MPaid-in

First Gas phase capital commitment, FSRU deployment, pipeline construction commencement.

2030+
$150MPaid-in

Additional clearing capital to coincide with hedging risk.

Financing Sources

DFC
EXIM Bank
ADB
Concessional Capital
Sovereign Equity
Domestic Equity
Cargo Participants
Strategic Principals

"Market formation de-risks infrastructure — not the other way around."

Strategic Value

A Strategic Platform for the Philippines and the United States.

Philippine Energy Security

  • Firm power for the Economic Security Zone
  • Coal replacement pathway
  • Industrial growth enablement
  • Data center and semiconductor ATP power
  • Grid reliability and resilience
  • Renewable integration at scale

New Asian Gas Market

  • Open-access physical delivery
  • Standardized contract specifications
  • Traded forward curve
  • Cleared dollar derivatives
  • Long-dated hedging instruments
  • Regional price benchmark

U.S. Strategic Value

  • 6–11 mtpa U.S. LNG demand
  • EXIM-eligible equipment exports
  • Critical-minerals refining outside China
  • Allied-law benchmark contract
  • Economic Security Zone delivery
  • U.S.–Philippine strategic alignment
Enabling Conditions

What Must Be Enabled.

SBMA/BCDA site designation for terminal and generation
RA 12120 third-party access implementation
Terminal and access-code regulatory priority
Broader derivatives market participation rules
Hedge-accounting guidance for Philippine entities
NGCP commitment for the Subic–Central Luzon corridor
U.S.–Philippine government coordination framework

"The binding constraint is not capital or technology. It is convening authority."

Request Briefing

The Philippines Can Import LNG — or Build the Market That Prices It.

Subic Bay Gateway Energy & Markets Hub creates the physical, financial, and strategic infrastructure required to power growth, integrate renewables, deepen U.S.–Philippine alignment, and establish a durable Asian gas delivery point.

Project overview and phase timeline
Capital structure and financing sources
Market infrastructure and forward curve design
U.S.–Philippine strategic alignment framework

Executive Briefing Request

Complete the form and we will be in touch within two business days.

We respond within two business days.

Subic Energy & Markets Hub

Energy Security • Market Infrastructure • Strategic Resilience

Illustrative project concept. Subject to regulatory, commercial, financing, and engineering development. Nothing herein constitutes an offer to sell or solicitation of an offer to buy any security or financial instrument. All figures are indicative and subject to change.

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