The swift passage of the proposed measure on natural gas would lure foreign investors to conduct exploration of natural gas in the country, Senator Pia Cayetano said on Friday.
Cayetano, chairperson of the Senate energy committee, said Senate Bill No. 2793 or the proposed Philippine Natural Gas Development Act would send the strongest signal to investors that there is natural gas waiting to be explored in the Philippines.
She said this is an indication the Philippines is serious in tapping and using indigenous gas, which would significantly lower energy costs and boost energy security.
Cayetano likened the measure’s enactment to a “giant billboard” which tells the world the Philippines is open for investments in natural gas.
“It seeks to declare that the Philippines will have very clear cut policies on natural gas, indigenous natural gas development, so that, in itself, is going to send the right signal,” said Cayetano in reply to questions by Senator Aquilino Pimentel III.
Asked by Pimentel if the Philippines has natural gas locations, Cayetano listed several “most prospective basins.”
She noted that Service Contract No. 38 governing the Malampaya gas field has been extended by another 15 years.
Prime Energy, which leads the consortium operating Malampaya, committed to drill two new wells to extend the gas field’s life and produce new gas by 2026.
“The message will be loud for all investors, whether Filipino or foreign,” Cayetano said.
She said SB 2793 would “promote awareness and create an environment that will open up opportunities for investors.”
The senator said little has been done to legislate support for exploration of our natural gas which peaked in the 1970s, when at least 150 wells had been drilled. “This was when Malampaya was discovered,” Cayetano said.
SB 2793 seeks to fill the gaps in policies, framework, legal support and incentives for investors to revive the exploration of indigenous gas resources, she said.
“It’s an opportunity because let me emphasize, this is indigenous gas. It is found in the Philippines. It is owned by the Philippines,” she said.
“So by passing this law, it’s like erecting a billboard on EDSA globally and tell them that the Philippines is prioritizing natural gas. If you are an expert in natural gas, you’re welcome to come here. We have good business opportunities,” Cayetano added.
