US Backs LNG, Nuclear Projects in Philippines Amid China Rivalry

The US Trade and Development Agency (USTDA) is working with the Philippine government to support liquefied natural gas (LNG) and nuclear projects in the country. The goal is to lower electricity costs and attract businesses into the Luzon Economic Corridor, a flagship infrastructure project backed by the US and Japan.

The USTDA head, Thomas Hardy, said that the agency is designed to open up markets for American companies, but acknowledged that this may be seen as countering China's influence in the region. He cited opportunities for LNG projects where US companies can partner with financiers and developers in the Philippines to bring in gas into the Southeast Asian nation.

The US is the world's top LNG exporter, with plans to double output by 2030. Nuclear power is also a potential avenue for US-Philippines cooperation, according to Hardy, who said his agency will host a delegation of Philippine government officials and private sector leaders later this year to familiarize them with small modular reactor technology.

The Philippine government has been leveraging its stronger defense ties with Washington for economic advantages. The country is seeking investments in the Luzon Economic Corridor, which includes a 4,000-acre AI hub north of Manila. President Ferdinand Marcos Jr. said that the ecozone is a key strategy for organizing growth and attracting businesses.

The US foreign aid agency Millennium Challenge Corporation (MCC) has also formalized a $60-million grant to the Philippines to help speed up the approvals process for energy projects and improve the services of electric cooperatives.