Natgas law sends strong invest signal
It seeks to declare that the Philippines is open and will have very clearcut policies on natural gas, indigenous natural gas development, so that, in itself, is going to send the right signal.
Daily TribuneIt seeks to declare that the Philippines is open and will have very clearcut policies on natural gas, indigenous natural gas development, so that, in itself, is going to send the right signal.
(FILE PHOTO) Natural gas consortium has committed $690 million to unlock deposits in Malampaya. Operator Prime Energy was also recognized for its exemplary technical prowess in gas supply management and flawless accident-free maintenance program. |
(Photograph courtesy of Joint Task Force Malampaya)
A swift passage of the proposed Philippine Natural Gas Development Act, or Senate Bill 2793, would send a concrete signal to investors that there is natural gas ready to be explored in the Philippines.
In the continuation of interpellation for the bill, Sen. Pia Cayetano, chairperson of the Senate energy committee, stressed the proposed law would be like a giant billboard to the world announcing that the Philippines is open for investments in natural gas.
“It seeks to declare that the Philippines is open and will have very clearcut policies on natural gas, indigenous natural gas development, so that, in itself, is going to send the right signal,” said Cayetano in reply to questions by Sen. Aquilino “Koko” Pimentel III during interpellation.
The energy committee chairperson said the law would address investors’ queries about 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.
Measure timely
SB 2793, she said, would “promote awareness and create an environment that will open up opportunities for investors.”
The senator noted little has been 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.
The energy panel chairperson 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,” Cayetano, who had inspected the Malampaya facilities recently as energy panel chairperson, said.
“So by passing this law, it’s like erecting a billboard on EDSA globally and tell 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.”
Asked by Pimentel if the Philippines has natural gas locations, Cayetano listed several “most prospective basins.”
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.
