The Senate on Monday passed on third reading a measure that supports the comprehensive development of the Philippine natural gas industry, a step crucial for achieving the country’s energy security and sustainable economic growth.
Senate Bill No. 2793, known as the Philippine Natural Gas Industry Development Act, establishes a legal framework designed to promote the development of the natural gas industry, covering aspects from transmission and distribution, to the supply of natural gas.
The bill aims to accelerate the exploration and development of domestic natural gas resources and facilities, prioritizing the use of indigenous over imported natural gas to enhance energy security.
“This is a momentous step forward as we strive to achieve energy security and sustainable economic growth. This legislation supports our own and also international commitments to cleaner, more efficient energy production,” Senator Pia Cayetano, chair of the Senate committee on energy and sponsor of the bill, said.
Cayetano said SB 2793 also “protects consumer welfare because encouraging more investments in natural gas will enhance energy security, providing for more accessibility to natural gas.”
“Historically, indigenous natural gas has been cheaper, and increasing opportunities for natural gas will only make the prices cheaper,” she said.
“We are looking forward to seeing the benefits of this measure, not tomorrow or by the end of the year, because energy security is a generational commitment. This is for the next generation. We hope to live healthy lives to witness the benefits of this measure,” she said.
The senator emphasized that the passage of the measure would ensure the country’s supply, rather than making it dependent on imported natural gas.
“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, give priority because it’s indigenous fuel, not just importation,” Cayetano said.
Cayetano also refuted claims that the measure would lead to higher electricity costs.
“I repeat, this bill is good for the country. This bill is good for the environment. And this bill is good for the Filipino consumers,” Cayetano said as she thanked her colleagues for supporting the approval of SB 2793.
In explaining his vote, Senator Raffy Tulfo emphasized that relying on foreign energy sources is not a viable strategy for achieving energy security.
He said this was validated when the conflict between Russia and Ukraine began in 2022, which led to the oil industry being held hostage by factors beyond everyone’s control.
The senator warned that the country should not rely on “luck and external circumstances” to ensure its essential services, economic infrastructure, and continuity of business operations.
While a strong advocate for renewable energy, Tulfo acknowledged its current limitations.
“Natural gas has been identified as a reliable fuel for power plants that can address the peak, mid-merit, and baseload demands of the country, helping to achieve energy security while gradually transitioning to renewable energy sources,” the measure states.
Tulfo said natural gas is crucial to energy security, and it is imperative for the country to develop its own indigenous sources of gas, as excessive reliance on external sources could be costly.
“We’ve observed this in other countries that are overly dependent on foreign energy sources, including some of our neighbors in Southeast Asia. The Natural Gas Act provides sufficient incentives for private entities to develop indigenous resources and ensure total independence from foreign energy,” Tulfo noted.
“The provisions of the bill will ensure that there are no sudden price fluctuations in the energy market, making energy more accessible and affordable for everyone, not just large businesses, so that regular Filipino households will benefit from this legislation,” he said.
