Solons seek Malampaya project extension

Lawmakers are pushing for the extension of the Malampaya gas-to-power project to prevent a looming energy crisis brought about by heightened demand and thinning resources.

In a virtual forum, Philippine Rural Electric Cooperatives Association (Philreca) Rep. Presley de Jesus said Malampaya played a vital role in the country’s 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,” de Jesus said.

The so-called “power block” of the House of Representatives filed Resolution No. 1063, which calls on the implementation of national defense and security policies to attain independent and sustainable energy supply, while also focusing on extending the life of the Malampaya plant.

The Malampaya field supplies about 40% of Luzon's power needs.

Service Contract 38, covering the Malampaya Deep Water Gas-to-Power project is operated by Shell Philippine Exploration B.V., together with its consortium partners Philippine National Oil Company-Exploration Corp., and Udenna Corp, which recently acquired Chevron’s stake in the project. The contract will expire in 2024.

“Indeed, the issue of energy security has long-term repercussions that go beyond the power industry,” APEC party-list Rep. Sergo Dagooc said.

“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.

Dagooc pointed out that, with COVID-19 causing a strain on the global supply chain, it is no longer sustainable to keep relying on foreign fuel sources.

For his part, Ako Padayon party-list Rep. Adriano Ebcas gave said that “unless the government quickly addresses all these energy issues and rising demands, 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.

Philippine Energy Independence Council Director Don Paulino said the speedy acceleration of the development of more energy resources can become an investment in the country’s future.

“This country will have further growth, social mobility, and deeper impact on society if we have energy security and independence. Energy demand will increase as the Philippines continues to grow. We need two to three times the supply we have right now,” Paulino said.

“This brings opportunities---now have an opportunity to develop our indigenous, renewable, and clean energy and transition from coal. This will result in more efficient and affordable energy,” Paulino said.

The lawmakers noted that the continuous operations of Malampaya is a critical in ensuring a sustainable, uninterrupted supply of energy.

The gas field also accounts for 98% of domestic oil and gas production.

As one of the most successful Public-Private Partnership (PPP) arrangements in the Philippines, it proves the country’s potential for energy security and independence.

RECOBODA Party-list Rep. Godofredo Guya said that “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.”

For his part, PNOC-EC president and CEO Rozzano Briguez underscored the need to fast-track the development of the energy supply.”

“We envision exploring new oil and gas sources to augment our Malampaya reserves,” Briguez said.

The PNOC-EC chief said the Department of Energy together with the University of the Philippines are conducting a study on the country’s sedimentary basins. -NB, GMA News