Malampaya natural gas plant. Source: https://malampaya.com/
MANILA, Philippines—The chairperson of the Senate energy committee continued to steer passage of the proposed Philippine Natural Gas Industry Development Act (Senate Bill 2793), saying it would protect consumers against high power rates while also boosting Philippine energy security.
The bill has been approved by the Senate on second reading.
Article continues after this advertisementIn a statement, Sen. Pia Cayetano, chair of the Senate energy committee, said the bill would hit the two objectives.
FEATURED STORIES BUSINESS SteelAsia ships P511.24M worth steel bars to Canada BUSINESS BIZ BUZZ: Tesla is coming to town BUSINESS Hermosa by Vista Land, making way for the finer things in life“Let us prioritize indigenous natural gas; this is ours. It will promote energy security and the record shows that it has by far been more stable in pricing and lower in pricing,” Cayetano said.
“We have the potential to explore, to discover and to develop our indigenous natural gas. Why are they (investors) not coming in? Because since the ‘70s, we neglected investing and encouraging promotion of indigenous natural gas. After Malampaya was discovered, wala na. Pinabayaan na natin,” she said.
Article continues after this advertisementCayetano said the Senate has a “once-in-a-lifetime chance” to pass this landmark 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 fuel.
Article continues after this advertisementA proposed amendment to subject natural gas supply and use to competitive bidding lost in a vote on the Senate floor 15-4.
Article continues after this advertisementREAD: Natural Gas Bill: Understanding priority for ‘Filipino gas’
Cayetano said this would be counterproductive and deter potential investors looking to develop the country’s indigenous gas fields.
Article continues after this advertisementShe said this would contradict the goal of the measure, which seeks to create an investor-friendly environment in the Philippine natural gas industry.
Cayetano 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 (PCC) 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.
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“This is a unique opportunity to promote indigenous natural gas, which is cheaper, cleanerjb casino, 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.
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