‘Underexplored’ local natural gas industry gets legislative boost
Government officials expect to see more energy players taking part in the exploration and development of local natural gas, an area deemed “largely underexplored.”
This bullishness came as Senate Bill No. 2793, or the Philippine Natural Gas Industry Development Act, gained support from senators, passing it on final reading on Monday.
Energy Secretary Raphael Lotilla said the proposed measure was a “welcome” development as the country remains “largely an underexplored area.”
“We need a more stable legal framework because if it’s not a law, then it’s just subject to changes on the part of the executive,” he told reporters on the sidelines of the Norway-Philippines LNG Summit on Monday.
“The policies of government to develop the upstream is important,” he added.
Lotilla said they were also looking at the granting of “special allowances” for those existing companies and potential players wanting to launch exploration activities that require heavy financing.
“The special allowances, if they will attract additional investors in our upstream natural gas exploration, and down the road 10 to 15 years, we have more natural gas resources, then that would be a welcome for all,” he said.
Meanwhile, Senator Pia Cayetano, chair of the Senate committee on energy and sponsor of the bill, stressed the need to beef up the sector to achieve energy security without relying on imported supplies.
She also said this would “encourage more investments in natural gas,” while also protecting power consumers from the price volatility of imported liquefied natural gas, which was witnessed when the Russia-Ukraine conflict erupted.
“We take a stand and we decide that we want to develop our own indigenous sources… This is a transition fuel that we are also saying we should give priority to because it’s indigenous fuel, not just rely on importation,” Cayetano said in a mix of English and Filipino.
“Historically, indigenous natural gas has been cheaper, and increasing opportunities for natural gas will only make the prices cheaper,” she added.
The Malampaya gas field, the country’s only indigenous commercial source of natural gas, supplies 20 percent of Luzon’s power needs. Since starting commercial operations more than two decades ago, Malampaya has so far contributed more than $13.8 billion to the Philippine government.
