17 senators favor Natgas Dev’t Act
The bill provides for the prioritization of indigenous gas over other imported LNG and other conventional fuels in terms of use and the production of power
Daily TribuneThe bill provides for the prioritization of indigenous gas over other imported LNG and other conventional fuels in terms of use and the production of power
The Senate Committee on Energy endorsed the passage of a bill supporting the full development of the natural gas industry.
The panel urged senators to act swiftly on Senate Bill 2793, or the proposed Philippine Natural Gas Development Act, which also mandated the priority dispatch of the country’s indigenous natural gas to attain energy security.
As of the latest headcount, 17 senators backed the enactment of SB 2793.
The bill seeks to revitalize indigenous gas exploration and develop natural gas infrastructure, the committee stressed.
The energy panel indicated the bill 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, the nation 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,” a senator said.
The proposed law would also boost investor confidence in the 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, thus far.
Malampaya is providing stable-cost gas to power much of Luzon’s energy requirements for more than 20 years. It is the country’s first and only natural gas field, which was discovered back in 1989.
Based on DoE policy, also pointed out that natural gas would serve as a transition fuel during the shift to full renewable energy use.
While the renewable energy industry is developing, natural gas can help decrease the country’s dependence on imported coal and oil.
