The Senate committees on energy and finance on Monday approved a bill requiring a national energy policy and framework for the development and regulation of the midstream natural gas industry.
Senator Sherwin T. Gatchalian raised to plenary level Senate Bill No. 2203 or the proposed Midstream Natural Industry Gas Development Act.
Mr. Gatchalian said the measure will promote the development of the industry to help achieve energy security via diversification of energy sources. This will also promote the use of natural gas, specifically liquefied naturals gas (LNG), “as a complementary fuel to variable renewable energy.”
“The legal and regulatory framework to be established by the Midstream Natural Gas Industry Development Act is necessary to unlock the untapped potential of natural gas, especially LNG, in line with the overarching 3S vision of the Committee on Energy to achieve greater Philippine energy stability, sustainability, and savings,” he said in his sponsorship speech.
“Increasing our supply of natural gas from LNG sources will help prevent an energy security crisis when Malampaya operations close for good in the near future,” he added.
Mr. Gatchalian said that 19% of the country’s power is generated from natural gas, the third-most utilized source after coal and renewable energy.
He noted that the Malampaya field is the only indigenous source of natural gas, but its service contract is set to expire in 2024.
The measure aims to develop LNG terminal infrastructure to import, receive, store and regasify natural gas.
The Energy department will be in charge of the LNG terminals but the terminals are not public utilities “consistent with the treatment of comparable facilities in other energy industries,” he said. — Vann Marlo M. Villegas