‘… methinks a back door diplomatic channel between the Philippines and China is still the best option to ensure world peace…’
IN view of the anticipated depletion of the Malampaya gas field natural gas deposits in three to five years, the government is dead set on developing new energy sources to prevent an economic slump because there isn’t enough electricity to energize industries.
The last time I had a chit-chat with Energy Undersecretary Alessandro Sales, the renowned geologist hinted at the urgency to come up with a plan to keep the country energized — one of which is to strike a balance between renewable energy and natural gas because grids are not designed for fluctuation.
Sales, who is supervising DOE’s Energy Resource and Management Bureau, particularly cited Prime Energy’s preparations for another natural gas exploration under Phase 4 of the Malampaya deep water gas-to-power project pegged at a whopping $805 million, including the drilling and development cost to bring to production.
According to Sales, at the present time, natural gas is the only reliable and cost-effective source of energy to modulate the variability of renewable energy sources.
In 2023, President Marcos Jr. signed the renewal agreement for the Malampaya Service Contract No. 38, extending the production for another 15 years, unlocking the potential both in the existing gas field, which is about 80 kilometers off the northwest coast of the island of Palawan, and prospect areas that are close to Malampaya.
At first glance, the project contract seemed just “another exploration but looking into geological studies, what we’re looking at is 210 billion cubic feet (CF) of gas reserves that can still be developed.
As a matter of contingency, the consortium has also committed to drill a third well.
However, there is more that the South China Sea can offer – 190 trillion cubic feet of natural gas reserves and 11 billion barrels of oil reserves based on the data provided by the Asia Maritime Transparency Initiative.
The DOE though would rather focus on the abundance source well within the 200-nautical mile Philippine exclusive economic zone where an estimated 12,158 billion cubic feet of potential natural gas resources and 6,203 million barrels of potential oil resources may be found. Interestingly, not even one energy company would dare take the risk that Prime Energy of Filipino billionaire Enrique K. Razon has taken amid China’s aggression despite laws recognizing the area where only the Philippines has the right to exclusivity to its natural resources.
Three years ago, a Senate resolution seeking to establish the oil and gas potential in the WPS was filed to address the lack of oil and gas exploration and moderate the country’s import dependence and lack of self-sufficiency.
According to the proponent, Sen. Sherwin Gatchalian, the government should not be complacent even as he cited the urgency to ascertain the oil and gas potential in the West Philippine Sea that would somehow give the Philippines some level of stability and protection from the tumultuous geopolitical conflict in foreign countries that has severely impacted local energy prices.”
By Usec. Sales’ own admission, such an idea should be considered – but with extreme caution as China has been consistent in its bid to prevent the Philippines from exploiting its own oil and gas reserves inside its EEZ via intimidation in its bid to boost its claim over the South China Sea, including the 200-nautical mile Philippine EEZ.
For one, China has been effectively preventing the Philippines from using its own resources by making the disputed maritime region a risky place for energy companies to explore, notwithstanding a 2016 decision by the Permanent Court of Arbitration that bestowed the Philippines’ exclusive right over its resources inside its EEZ.
To date, China has been controlling maritime features inside Philippine territorial waters, which include the Julian Felipe Reef, Escoda Shoal, Rozul Reef, Recto Bank and Iroquois Reef via gray zone tactics, embarking on the positioning of floating outposts masquerading as fishing vessels.
These are the areas where there may be an abundant supply of natural gas based on previous geological studies.
When asked how the government is dealing with China’s aggression, Usec. Sales gave a premium on “safety first.”
In my humble opinion as an ordinary Juan Dela Cruz, methinks a back door diplomatic channel between the Philippines and China is still the best option to ensure world peace, although intimidation by Chinese and posturing of forces of the Philippines and its allies show position of strength but it increases the tension, which at the end of the day, places a major route of global commerce with 60% of maritime trade passes through the West Philippine Sea or South China Sea within the Philippine EEZ under clear and present danger. Just one foolish mistake either by our country or China could trigger a catastrophic World War 3.
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