The recently signed Philippine Natural Gas Industry Development Act is expected to attract more investments and secure the country’s energy supply as it transitions to renewable energy.
In a report by Business World, Senator Joseph Victor “JV” G. Ejercito highlighted the law’s potential to lower energy costs, which have been a barrier to investments in the country, saying that this initiative would encourage more investments in the industry, which in turn would offer more employment opportunities
President Ferdinand R. Marcos Jr. signed Republic Act (RA) No. 12120 in January. 15, aiming to promote natural and liquefied natural gas (LNG) as cost-effective and vital contributors to energy security.
The law permits entities to invest in upstream and downstream natural gas facilities and supply chains, subject to competition laws. It also tapped the Department of Energy (DOE) to craft a regulatory framework for the downstream gas industry and issue permits for related facilities.
The Malampaya gas field, the Philippines’ sole indigenous gas source, is projected to be depleted by 2027. RA 12120 aims to address this challenge by positioning Manila as an LNG trading and transshipment hub in the Asia-Pacific region.
The Philippines plans to increase renewable energy’s share in its power mix to 35% by 2030 and 50% by 2040, up from 22% currently. The inclusion of natural gas as a transition fuel is expected to stabilize energy supply while renewable energy adoption scales up.
Economist Leonardo A. Lanzona questioned the necessity of a transition fuel, arguing that direct adoption of renewable energy aligns better with global climate goals. Meanwhile, Energy Undersecretary Sharon S. Garin emphasized the need for advanced battery systems to support the country’s renewable energy targets by 2050.
Additionally, President Marcos Jr. also hinted at exploring gas reserves within the country’s exclusive economic zone in the South China Sea, despite geopolitical tensions. The area, believed to hold significant gas deposits, remains contested by China.
As the Philippines navigates its energy transition, the public’s support for clean and sustainable energy policies is vital to ensuring affordable and reliable power for generations to come.
There are no comments
Add yours