BUSINESS

House nudges Senate over nat gas dev’t bill

Chito Lozada

Members of the House of Representatives are appealing to the Senate to speed up deliberations on the bill that seeks a state policy for the full development of the natural gas industry.

The House version of the bill has been transmitted to the Senate in August last year but the Senate counterpart remains in the technical working group of the Senate committee of energy.

Albay Rep. Joey Sarte Salceda, one of the authors of House Bill (HB) 8456, or the proposed Philippine Downstream Natural Gas Industry (PDNGI) Development Act, said the measure is a legislative priority of President Ferdinand “Bongbong” Marcos Jr. 

“The base version of the Senate bill under deliberation is the House version, so more or less I expect no major differences once it gets out of the committee and plenary,” he said.

Salceda said the bill’s passage was needed as natural gas produces 32-40 percent less emission than coal when used for power generation.

“It could help the transition away from coal as we wait for renewables to become cheaper and more dependable as baseload,” Salceda said.

However, the lawmaker stressed that legislation was needed to put in place a “full value chain with proper infrastructure.”

 According to Salceda, safeguards should be made part of the state’s natural gas policy because “the key issue with natural gas is methane emissions.”

“There are ways to get rid of that, but you have to do it through the whole value-chain,” Salceda said. 

Self-reliance improves

He said the bill’s enactment into law would sharply reduce Philippine dependence on imported fuel.

“We can’t just be an importer and not have a regulatory regime or complementary infrastructure after importation. We need this law,” Salceda stressed.

HB 8456 mandates the Department of Energy (DoE) to be the lead government agency in the proposed PDNGI.

The DoE role in the development of the Philippines’ natural gas industry will include supervision and monitoring of the proposed system.

 It would also regulate construction and operation of natural gas pipelines and other facilities for the transmission and supply of natural gas.

It gives the Energy Regulatory Commission sole regulatory authority for setting rates and other terms covering natural gas supply.

At the Senate, Sen. Raffy Tulfo filed Senate Bill (SB) 2247, which is now being reviewed by a technical working group.

SB 2247 would promote the development of a comprehensive and integrated legislative policy that aids in the rapid development of the Philippines’ natural gas sector. 

Tulfo had said the bill would support the development of new wells in light of the depleting volume of gas from the Malampaya field.

Tulfo had said the bill was urgent because it would not only extend the life of Malampaya gas but also unleash the potential of new wells near the existing field.

Malampaya supplies 20 percent of the Luzon’s electricity requirements.