Solons seek contract extension of Malampaya natural gas project

By Alena Mae S. Flores – August 04, 2020 at 08:45 pm
from manilastandard.net

Several lawmakers called for the contract extension of the Malampaya gas-to-power project in northwest Palawan to address an anticipated increase in future power demand.

The legislators filed House Resolution No. 1063 which calls for the implementation of national defense and security policies to attain independent and sustainable energy supply while focusing on extending the life of the Malampaya gas field.

“Malampaya plays a vital role in energy security. Is it enough? That’s the question. Natural gas is very affordable and dependable. Energy independence would help us sustain our rapid development,” said PHILRECA party-list Rep. Presley De Jesus during the virtual Kapihan ng Samahang Plaridel with the theme “Energy Independence Crucial to National Security.”

Gas production from the Malamapaya project under Service Contract 38 is expected to start to be depleted in the next few years. The Malampaya consortium led by Shell Philippines Exploration B.V. is asking the Department of Energy for an extension of the contract beyond 2024 to allow it to look for more gas prospects.

APEC party-list Rep. Sergio C. Dagooc said there was a need to secure the country’s energy needs as the COVID pandemic exposed the country’s vulnerabilities to the global oil supply

“Energy security is a crucial factor in protecting and upholding our national sovereignty, so we can keep domestic economies running at full power,” said Dagooc, adding that COVID-19 showed that it would not be sustainable to keep relying on foreign fuel sources.

Dagooc said they filed the resolution “to review our energy policies, so we can transition to energy independence.”

Ako Padayon party-list Rep. Adriano Ebcas warned that unless the government quickly addressed all the energy issues and rising power demand, “the Philippines may face an acute power shortage.”

“These power shortages can have far-reaching effects—from access to energy and high energy cost, to livelihood, education, and of course, national security,” Ebcas said.