The Department of Energy (DOE) said the Natural Gas Industry Development Act will make the country’s energy sector more stable.
The Senate on Monday passed on third and final reading Senate Bill (SB) No. 2793 which supports the comprehensive development of the Philippine natural gas industry.
The policy provides a “stable legal framework” for the sector to flourish, DOE Secretary Raphael Lotilla told reporters on the sidelines of an event in Makati City.
Lotilla said the law also empowers the use of natural gas for applications outside of energy production.
“For example, in the agri sector, the feedstock being used for production of fertilizers, that’s natural gas major element at this time. We look forward to the day when the feedstock for fertilizer production… is renewable feedstock … We’re looking for local substitutes of imported sources… that enhances our overall energy security and even our food security,” Lotilla said.
SB 2793 establishes a legal framework promoting the development of the natural gas industry, from transmission and distribution.
The bill also 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 legislation supports our own and also international commitments to cleaner, more efficient energy production,” said Pia Cayetano, Senate committee on energy chair and sponsor of the bill, in a statement.
SB 2793 “protects consumer welfare because encouraging more investments in natural gas will enhance energy security, providing for more accessibility to natural gas,” she added.
“Historically, indigenous natural gas has been cheaper, and increasing opportunities for natural gas will only make the prices cheaper,” Cayetano also said.
The passage of the measure would also ensure the country’s supply, rather than depending on imported natural gas, she noted. According to the DOE, the law will attract additional investors in upstream natural gas exploration.
