PHOTO
The Philippine oil refinery complex of Petron Corp. is seen on the coast of Bataan province nortwest of Manila on February 10, 2009. Petron Corp. on February 27, 2009 reported a 3.92 billion-peso (80.7 million USD) net loss for calendar year 2008, blaming crude price volatility for plunging it into the red. The wild swings in crude oil prices, from a record 141 dollars a barrel in July 2008 to 40 dollars in December, saw Petron incur significant losses on the value of its inventory, it said in a statement. AFP PHOTO/ROMEO GACAD (Photo by Romeo GACAD / AFP) Image used for illustrative purpose.
Efforts by the Prime Energy-led consortium to drill new gas wells at the Malampaya project off Palawan province next year would prolong the life of the country's sole natural gas field, a lawmaker said.
During deliberations on Senate Bill 2793 or the proposed Philippine Natural Gas Industry Act, bill sponsor Sen. Pia Cayetano, chairperson of the Senate committee on energy, said her hopes are high that drilling for two new gas wells by Prime Energy would yield positive results and extend the life of the Malampaya deep water gas-to-power project.
Prime Energy is the lead company in the Service Contract 38 consortium that operates the Malampaya gas field along with other members, including state-owned PNOC-EC.
'Drilling will start next year, (and this) hopefully will have immediate results. So (by) then we would be able to give more updates on how much can be extracted from those new sources,' Cayetano said.
She said drilling for the new wells already has a target source with confirmed new gas deposits.
'There's already (a) confirmed source, so we already have that, and that will extend the life (of Malampaya),' she added.
Cayetano also pointed out that immediate approval of SB 2793 would encourage more energy companies to do exploration work for natural gas and energy projects as the proposed law 'seeks to create that environment which is open to investors, all kinds, everyone.'
Also, SB 2793, if enacted into law, will ensure that indigenous natural gas will be prioritized over imported and conventional fuels for power generation.
'And then later on, the bill would also create this environment where there will be purchases of the gas,' Cayetano said.
She added that SB 2793 will also help the country attain energy security or reducing, if not eliminating, disruptions in power supply.
'When we support this natural gas bill, this will ensure that we now have a steady supply that comes from our own country, hindi tayo vulnerable sa mga nangyayari sa ibang bansa,' Cayetano said, referring to international conflicts such as Russia's invasion of Ukraine that impact the supply and prices of liquefied natural gas (LNG).
Cayetano earlier said that SB 2793 covers all aspects of the natural gas industry, including, transportation, transmission, and storage, among others.
The bill, if enacted, would help the Philippine natural gas industry comply with international and local best practices, according to Cayetano.
SB 2793, the senator said, would also ease the achievement of targets set by the Philippine Energy Plan 2023-2050 for an 'inclusive and sustainable development propelled by modern and clean energy technologies.'
Cayetano said natural gas, as previously declared by the Department of Energy (DOE), will act as a transition or bridge fuel to full green energy that would reduce or eliminate fossil fuels in the Philippine energy mix.
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