‘Natural gas law to draw in more investors in exploration’

The Philippine Star

September 10, 2024 | 12:00am

MANILA, Philippines — The swift passage of Senate Bill 2793, the proposed Philippine Natural Gas Development Act, would send the strongest signal to investors that there is natural gas waiting to be explored in the Philippines.

Sen. Pia Cayetano, chairperson of the Senate energy committee, stressed that enacting the proposed law would be like a giant billboard telling the world that the Philippines is open for investments in natural gas.

“It seeks to declare that the Philippines is open and will have very clear-cut policies on natural gas, indigenous natural gas development, so that, in itself, is going to send the right signal,” she said.

She added the law would address investors’ queries whether the Philippines was ready to develop its indigenous gas resources and open to investments, adding that the message will be loud for all investors, whether Filipino or foreign.

SB 2793, she said, would “promote awareness and create an environment that will open up opportunities for investors.”

Cayetano noted there’s been little done to legislate support for exploration of natural gas which peaked in the 1970s, when at least 150 wells had been drilled.

“This was when Malampaya was discovered,” Cayetano said.

The Philippines, she said, effectively abandoned the exploration of existing natural gas resources.

SB 2793 seeks to fill the gaps in policies, framework, legal support and incentives for investors to revive the exploration of indigenous gas resources, she said. It gives the Philippines another chance to develop and use its own indigenous gas, Cayetano said.

“It’s an opportunity because let me emphasize, this is indigenous gas. It is found in the Philippines. It is owned by the Philippines,” she stressed.

Cayetano said enacting SB 2793 sends the signal that the country was serious in giving priority to tapping and using indigenous gas, which would significantly lower energy costs and boost energy security.

“Natural gas is called a transition fuel, and we have proof that there is, it’s available in the Philippines,” said Cayetano, who had inspected the Malampaya facilities recently as energy panel chairperson.

“So by passing this law, it’s like erecting a billboard on EDSA globally and telling them that the Philippines is prioritizing natural gas,” she said. “If you are an expert in natural gas, you’re welcome to come here. We have good business opportunities.”

Service Contract 38 governing the Malampaya gas field has been extended by another 15 years.

Prime Energy, which leads the consortium operating Malampaya, had committed to drill two new wells to extend the gas field’s life and produce new gas by 2026.