Senate Bill (SB) 2793, or the proposed Philippine Natural Gas Industry Development Act, which will promote energy security and protect consumers from higher electricity cost was approved on second reading Tuesday.
“Let us prioritize indigenous natural gas; this is ours. It will promote energy security and the record shows that it has by far more stable in pricing and lower in pricing,” Senator Pia Cayetano said.
“We have the potential to explore, to discover, and to develop our indigenous natural gas. Why are they (investors) not coming in? Since the ‘70s, we neglected investing and encouraging the promotion of indigenous natural gas. After Malampaya was discovered, we did nothing else,” she argued.
Rare occasion
Cayetano highlighted that the Senate has a “once-in-a-lifetime chance” to pass a key piece of legislation prioritizing indigenous fuel over imports, adding that over a span of 14 years, indigenous gas prices have remained steady compared to the volatile and often rising costs of imported fuels.
During plenary deliberations, Cayetano opposed the competitive bidding amendment to SB 2793, arguing that this would be counterproductive and deter potential investors looking to develop the country’s indigenous gas fields. She asserted that this would contradict the goal of the measure, which seeks to create an investor-friendly environment in the Philippine natural gas industry. The amendment lost 15-4.
The senator stressed that even though gas supply and purchase agreements are negotiated, the Department of Energy (DoE) and Energy Regulatory Commission (ERC) ensure consumers are protected from high electricity prices.
“There are strict provisions on market pricing in the service contracts that the DoE and ERC are duty-bound to uphold. They are in place…This bill (SB 2793) essentially maintains the status quo,” Cayetano said, adding that both agencies, along with the Philippine Competition Commission ensure transparent negotiations and dealings.
Prioritizing the indigenous natural gas industry, she said, means standing by it with established checks and balances, including those set by the Consumer Welfare Act.
“This is a unique opportunity to promote indigenous natural gas, which is cheaper, cleaner, and serves as a transition fuel as the Philippines shifts towards renewable energy. We encourage the shift to natural gas, whether imported or local, but prioritize indigenous sources for enhanced energy security and price stability,” Cayetano stressed.