Gatchalian pushes establishment of natural gas terminals

By Javier Joe Ismael January 5, 2021
https://www.manilatimes.net/2021/01/05/news/national/gatchalian-pushes-establishment-of-natural-gas-terminals-2/822532/

SEN. Sherwin Gatchalian has set in motion deliberations in the Senate on a measure that seeks to further develop the natural gas industry.

Gatchalian said there had to be a replacement for the Malampaya gas project before its supply runs out to avert possible rotational brownouts in 2022.

Senate Bill (SB) 1819 was filed in anticipation of the nearing depletion of the gas output of the Malampaya-Camago wells.

The Senate Energy committee headed by Gatchalian will conduct its first hearing on the measure on today, January 5.

“The output of the gas will start going down by 2024. The direction of the Department of Energy is to encourage the private sector to build receiving terminals for imported liquefied natural gas (LNG),” the senator said.

“And because we haven’t discovered new sources of gas in our country, we have to resort to importing LNG just to make sure that those 3,200-megawatt gas-fired power plants keep on running,” he explained.

The Malampaya project fuels five power plants, which comprise 20.0 percent of the capacity of the Luzon grid. It serves 53.75 percent of Meralco’s electricity demand.



The Department of Energy (DoE) issued a circular in November 2017 outlining the regulations to be followed by all stakeholders in the downstream natural gas industry.

Gatchalian said the DoE’s regulations need a complementary law to cover all aspects of the midstream natural gas industry which includes transportation, transmission, storage, and marketing of natural gas in its original or liquefied form.

“Owing to the intricacy of the midstream natural gas industry, a comprehensive legislation is needed to fill in the gaps and strengthen existing bridge policies in order to unlock the potential of natural gas as a vital source of energy for the country,” the senator pointed out.