Marcos signs law to develop natural gas industry
MANILA, Philippines — A measure batting for the development of the country’s natural gas resources has been signed into law.
President Ferdinand Marcos Jr. signed the Philippine Natural Gas Industry Development Act on January 8, but the law was uploaded to the Official Gazette on January 14.
Under the new law, the government is mandated to “promote natural gas as a safe, efficient, and cost-effective source of energy and an indispensable contributor to energy security by establishing the Philippine Downstream Natural Gas Industry (PDNGI) for the benefit of all segments of the nation’s population and all sectors of the economy.”
The new law positions natural gas as the transition fuel towards renewable energy.
"With more than half of our energy requirements being imported, we are clearly vulnerable to geopolitical conflicts," Energy Committee Chair Sen. Pia Cayetano said in a statement.
Oil prices in the Philippines have increased on a weekly basis, with the government citing erratic global prices due to geopolitical conflicts such as the war between Russia and Ukraine.
"Based on the Energy Department's 2022 Primary Energy Mix, 63.2% of our energy comes from oil and coal. As the country moves towards renewable energy sources, we need to find additional baseload resources, aside from oil and coal, which are less harmful to the environment," she added.
Cayetano also cited a decline in natural gas exploration activities.
Opposition
The Philippine Natural Gas Industry Development bill did not run through the legislative mill unopposed.
Three senators voted against the measure: Sherwin Gatchalian, Risa Hontiveros and Aquilino Pimentel III.
The main point of contention was how it could drive up energy costs since domestic natural gas is more expensive.
“Competitive selection process allows consumers to get the best rates. Without it, we risk paying significantly more for electricity than necessary,” Hontiveros explained in a statement.
Marcos has been urged to veto the measure by different civil groups.
Green groups pointed out that natural gas is still a fossil fuel and can harm the environment.
“It has been a common justification of the government to falsely prove that the country is transitioning to renewables and a clear detour of the Paris Agreement to limit global warming to 1.5°C,” the Philippine Movement for Climate Justice said.
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