With uncertainty surrounding the remaining gas in the Malampaya field, the energy sector seeks a bill that will help rationalize the liquefied natural gas (LNG) importation process.
In a report by BusinessWorld, Prime Energy General Manager Donnabel Kuizon-Cruz said that the will would allow companies and government agencies to import gas in an organized way
Malampaya, the country’s lone indigenous commercial natural gas source is expected to run out of recoverable gas by 2027. Currently, it covers 20% of electricity requirements in the Luzon grid.
The energy sector is in need of a stable regulating framework to foster growth in power generation, Malampaya operator Prime Energy Resources Development B.V. stated.
Senator Sherwin T. Gatchalian recently filed Senate Bill No. 152 to aid in the development of the midstream natural gas industry that includes natural gas transportation and storage, citing that LNG will help in the country’s venture to shift into renewables. Currently, no law governs the liquefaction, transportation, and transmission of natural gas, he added.
At the same time, similar measures were also filed by Senators Rafael T. Tulfo, Emmanuel Joel J. Villanueva, and Maria Imelda Josefa Remedios R. Marcos, stating that a balanced energy mix is necessary.
The House of Representatives recently passed the third and final reading of a counterpart bill that allows eligible companies a zero percent value-added tax (VAT) toward the commodity.
This measure should secure that costs will not be shouldered by the public, Finance Assistant Secretary Karlo Fermin S. Adriano Finance Assistant Secretary said.
Moreover, he said that further tax exemptions must be under the supervision of the Fiscal Incentives Review Board.