VOTING 14-3, the Senate on Monday approved on third and final reading Senate Bill (SB) 2793 or the proposed Philippine Natural Gas Industry Development Act, which aims to achieve energy security and sustainable economic growth.
SB 2793 seeks to develop the natural gas industry by revitalizing indigenous gas exploration and developing liquefied natural gas or liquefied natural gas (LNG) infrastructures.
Sen. Pia Cayetano, chairman of the Senate Committee on Energy, said the passage of SB 2793 would benefit the country and the next generation because “historically, indigenous natural gas has been cheaper.”
Senator Pia Cayetano. PHOTO BY J. GERARD SEGUIA
“This legislation supports our own and also international commitments to cleaner and more efficient energy production,” the senator said. “We have to remember that natural gas is a transition fuel, and our goal is to move to renewables.”
“This means also protecting consumer welfare because, with the entry, we promote the encouragement of more investments in natural gas,” she added.
Cayetano said the proposed law has “strong provisions for transparency and fair pricing.”
Sen. Raffy Tulfo, said the bill provides enough incentives for the development by private entities to ensure total independence from foreign sources.
“It is difficult to rely on others. And we’ve been with other countries that are too dependent on foreign sources, such as some of our neighbors in Southeast Asia.”
“Natural gas is of utmost importance to our energy security, and it is urgent that we develop our own indigenous sources of gas,” Tulfo said.
Those who voted no were Senate Minority Leader Aquilino Pimentel III and Sens. Risa Hontiveros and Sherwin Gatchalian.
Hontiveros said the bill prioritizes indigenous natural gas, potentially undermining the “least-cost” principle, which is a crucial safeguard for Filipino consumers against unreasonable electricity prices.
Under the bill, the domestic natural gas sector would be under no pressure to match their selling price with what is available from regional and global markets, Hontiveros said.
She said the Philippine energy sector would be required to purchase everything that the sector would produce, and even the most inefficient wells would be guaranteed a market.
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