Volatile market a reminder to PH to rely on indigenous natural gas

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“Malampaya provides a certain degree of energy security to the Philippines. Besides, LNG is a much cleaner fossil fuel than oil and coal.”

A disruption in the supply from these major oil and gas producers will predictably raise the prices of these two commodities and wreak havoc on the global economy. Reducing the dependence on these producers, thus, will be the key to insulating an economy but it is not that easy—especially for importing nations with no indigenous resources.

Contrary to the claims of certain critics, the Malampaya gas field’s potential to yield more natural gas through the drilling of new wells is real and high. The bright prospects earlier prompted the Department of Energy to renew Service Contract 38, which includes the Malampaya gas field, until 2039.

The bill hopefully will mandate the Department of Energy to lay down rules making the use of natural gas found and developed in the Philippines a priority in the generation of electricity. SB 2247 will put things in perspective insofar as exploiting our natural resources is concerned. We hope lawmakers will have the foresight to see the real potential of the Philippines of having its own supply and system to deliver zero-importation cost natural gas to the energy grid.

 

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