The chairperson of the Senate committee on energy expressed confidence in the success of efforts set next year to drill new gas wells that would prolong the life of the Malampaya gas project off Palawan province.
Senator Pia Cayetano said during interpellation of Senate Bill No. 2793 or the proposed Philippine Natural Gas Industry Act her hopes are high that drilling for two new gas wells by Prime Energy Resources Development B.V. would yield positive results and extend the life of the Malampaya Deep Water Gas to Power Project.
Prime Energy is the lead company in Consortium 38 which operates the Malampaya gas field along with other consortium members that include state-owned PNOC-EC. Prime Energy is the subsidiary of Prime Infrastructure Capital Inc. owned by businessman Enrique Razon Jr.
Senator Joel Villanueva asked Cayetano during interpellation on Wednesday about the development timelines of these exploration projects and whether it would help address the country’s demands for energy.
“Drilling will start next year, [and this] hopefully will have immediate results. So [by] then. we would be able to give more updates on how much can be extracted from those new sources,” Cayetano said.
She said drilling for the new wells already has a target source with confirmed new gas deposits.
“There’s already [a] confirmed source, so we already have that, and that will extend the life [of Malampaya],” she said.
Cayetano said the immediate approval of Senate Bill 2793 would encourage more energy companies to do exploration work for natural gas and energy projects as the proposed law “seeks to create that environment which is open to investors, all kinds, everyone.”
Senate Bill 2793, if enacted into law, will ensure that indigenous natural gas will be prioritized over imported and conventional fuels for power generation.
“And then later on, the bill would also create this environment where there will be purchases of the gas,” Cayetano said.
She said Senate Bill 2793 would also help the country attain energy security or reducing, if not eliminating, disruptions in power supply.
“When we support this natural gas bill, this will ensure that we now have a steady supply that comes from our own country, so we will not be vulnerable by what is happening in other countries,” Cayetano said, referring to international conflicts like Russia’s invasion of Ukraine that impact the supply and prices of liquefied natural gas (LNG).
Cayetano earlier said that Senate Bill 2793 covers all aspects of the natural gas industry, including, transportation, transmission, and storage, among others.
The bill, if enacted, would help the Philippine natural gas industry comply with international and local best practices, according to Cayetano.
She said Senate Bill No. 2793 would also ease the achievement of targets set by the Philippine Energy Plan 2023-2050 for an “inclusive and sustainable development propelled by modern and clean energy technologies.”
Cayetano said natural gas, as previously declared by the Department of Energy, will act as a transition or bridge fuel to full green energy that would reduce or eliminate fossil fuels in the Philippine energy mix.
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