The Philippine Star
August 22, 2024 | 12:00am
MANILA, Philippines — The Senate committee on energy has formally endorsed the passage of a bill supporting the full development of the country’s natural gas industry.
In a sponsorship speech, committee chair Sen. Pia Cayetano urged colleagues to act swiftly on Senate Bill 2793, or the proposed Philippine Natural Gas Development Act, which also mandates the priority dispatch of the country’s indigenous natural gas to attain energy security.
The bill seeks to revitalize indigenous gas exploration and develop natural gas infrastructure. It also provides for the prioritization of indigenous gas over other imported LNG and other conventional fuels in terms of use and the production of power.
“With Filipino gas, we will not be heavily dependent on foreign suppliers, who may suddenly pull out of the Philippines to sell their gas to richer buyers elsewhere. Filipino gas will give us a significant measure of energy security and sovereignty underpinning our economic development,” she said.
Cayetano stressed that the proposed law would also boost investor confidence in the Philippine economy as it would signal government commitment to industries that require heavy investments, like natural gas.
The bill would provide a market for indigenous gas by giving priority to its procurement and use for power generation, a policy already enshrined in the Electric Power Industry Reform Act (EPIRA) and successive issuances from EPIRA’s chief implementing agency, the Department of Energy (DOE).
This would assure investors of a market for the production of more wells, as the senator noted that the Philippines ranks lowest compared with other Southeast Asian countries in terms of natural gas discoveries.
“Malampaya was supposed to be the first of many producing gas fields in the Philippines but it turned out to be the only one. It has grown old, and may become depleted as early as 2027. This poses a dilemma. To support the DOE’s long-term energy plan, the country needs more Malampayas: we barely have one left,” Cayetano said.
Malampaya is providing stable-cost gas to power much of Luzon’s energy requirements for more than 20 years.
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