Natural gas dev’t bill secures broad support in Senate

By Sheldeen Joy Talavera, Reporter

THE PROPOSED Philippine Natural Gas Industry Development Act, which seeks to support the development of the country’s natural gas industry, has garnered backing from 16 other senators, joining Sen. Pilar Juliana “Pia” S. Cayetano in endorsing its passage.

“This bill (Senate Bill No. 2793) covers all aspects of the natural gas industry, including transportation, transmission, and storage, among others,” Ms. Cayetano said in her sponsorship speech on Aug. 20.

“This ensures adherence of the natural gas operations to both international and local best practices,” she added.

Besides Ms. Cayetano, who chairs the Senate energy committee, other senators backing the approval of Senate Bill No. 2793 include Sen. President Pro-Tempore Jose “Jinggoy” P. Estrada, Jr., Majority Leader Francis N. Tolentino, and Minority Leader Aquilino Martin “Koko” D. Pimentel III, based on the committee report submitted by the Senate committees on energy, ways and means, and finance.

Other supporters are Mary Grace Poe-Llamanzares, Mark A. Villar, Joseph Victor G. Ejercito, Ronald M. dela Rosa, Cynthia A. Villar, Christopher Lawrence “Bong” T. Go, Juan Miguel F. Zubiri, Emmanuel Joel J. Villanueva, Rafael “Raffy” T. Tulfo, Robinhood “Robin” C. Padilla, Alan Peter S. Cayetano, Ramon B. Revilla, Jr., and Manuel “Lito” M. Lapid.

The bill seeks to revitalize indigenous gas exploration and develop natural gas infrastructure.

“This bill provides for the prioritization of indigenous gas over other imported LNG (liquefied natural gas) and other conventional fuels in terms of use and the production of power,” Ms. Cayetano said.

“With Filipino gas, we 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,” she added.

She also said that the proposed measure would likely “boost investor confidence in the Philippine economy” as it would signal government commitment to industries that require heavy investments, such as natural gas.

“Malampaya was supposed to be the first of many producing gas fields in the Philippines, but it turned out to be the only one. It has grown old and may become depleted as early as 2027. This poses a dilemma. To support the DOE’s (Department of Energy) long-term energy plan, the country needs more Malampayas: we barely have one left,” Ms. Cayetano said.

Amid the push for renewable energy, she said that natural gas may help decrease the country’s dependence on imported coal and oil and would serve as a transition fuel.

Sought for comment, Gerry C. Arances, executive director of the Center for Energy, Ecology, and Development, said that with the number of supporters, “it seems like the Philippine Natural Gas Industry Development Act will coast through the Senate.”

“We hope that these senators, especially Senator Pia Cayetano, will consider that the Philippines can once more return to sourcing 100% of its energy requirements without the need for a transition fuel,” he said in a Viber message.

He said that gas “increases” the country’s dependence on foreign markets and their volatility, which Ms. Cayetano seeks to minimize with her sponsorship of the bill.

“The Senate will be making a mistake by passing this bill. We hope that they will realize it and make a U-turn before condemning the Philippines down the path of expensive electricity, dependence on foreign imports, and increased vulnerability to disasters,” he said.

Terry L. Ridon, convenor of the think tank InfraWatch PH, said that using indigenous gas should still ensure the least cost of power for consumers as mandated under the Electric Power Industry Reform Act of 2001 (EPIRA).

“While we have no objection to the use of indigenous gas in the country’s energy system, generation facilities utilizing indigenous gas should still compete with other generation facilities on the basis of price, as ensuring the least cost of power remains the most important mandate under EPIRA,” he said in a Viber message.

“The mere use of indigenous natural gas should not be the basis of priority dispatching in our energy system,” he added.