Legislators: License to explore Malampaya must be extended
By Jordeene B. Lagare – August 5, 2020
from The Manila Times
Several legislators on Tuesday pushed to extend the license to explore the Malampaya natural gas field in offshore Palawan province to address the country’s looming energy crisis amid increasing demand and thinning resources.
In the Kapihan ng Samahang Plaridel’s virtual briefing, Philippine Rural Electric Cooperatives Association Party-list Rep. Presley de Jesus noted Malampaya’s “vital role in energy security” and natural gas’ affordability and dependability, but asked if its reserves were enough.
The issue of energy security has long-term repercussions that go beyond the country’s energy sector, according to Association of Philippine Electric Cooperatives Party-list Rep. Sergio Dagooc.
“Energy security is a crucial factor in protecting and upholding our national sovereignty, so we can keep domestic economies running at full power,” Dagooc said, adding that it was no longer sustainable for the country to keep relying on foreign fuel sources, since the coronavirus pandemic put a strain on the global supply chain.
The Philippines may grapple with an “acute power shortage” if the government does not swiftly address all energy issues and rising demand, he warned.
Such shortages, Ako Padayon Party-list Rep. Adriano Ebcas said, “can have far-reaching effects — from access to energy and high energy cost, to livelihood, education and, of course, national security,”
Rural Electric Consumers and Beneficiaries of Development and Advancement Party-list Rep. Godofredo Guya said close collaboration between the public and private sector was important, especially in energy exploration and development.
“Now is not the time to get carried away with legal battles. We must tap the private and public sector to improve capacity and supply, and attract more investors,” Guya said.
Their remarks come after they and Public Safety Alliance for Transformation and Rule of Law Party-list Rep. Jorge Antonio Bustos filed on July 23 House Resolution 1063, which calls for the implementation of national defense and security policies to attain independent and sustainable energy supply and the extension of the life of the Malampaya facility.
Service Contract 38, which covers the Malampaya Deep Water Gas-to-Power Project, is operated by Shell Philippines Exploration B.V. and partners UC Malampaya Philippines Pte. Ltd. and PNOC Exploration Corp. The contract expires in 2024.
The field fuels up to 40 percent of Luzon’s electricity.
This also comes after PNOC EC President and Chief Executive Officer Rozzano Briguez said the Department of Energy and the University of the Philippines were conducting an extensive study of the country’s sedimentary basins.
“We need to fast-track the development of our energy supply. We envision exploring new oil and gas sources to augment our Malampaya reserves,” he added.
Briguez also said the government planned to ramp up exploration activities in the country in line with the company’s vision of becoming the leading energy exploration and production company in the Philippines by 2030.
He also said PNOC EC wanted to collaborate with other institutions and companies to further study Philippine sedimentary basins to assess their petroleum potential, given new information and advances in technology.
