Senator Pia Cayetano (Senate PRIB)

Senator Pia Cayetano is bent on debunking claims that prices of imported liquefied natural gas (LNG) are cheaper than indigenous or Malampaya gas. 

Cayetano, the sponsor of Senate Bill (SB) No.2793 or the proposed Philippine Natural Gas Industry Development Act, said in a statement Sunday, Sept. 29 that imported LNG prices were actually on the rise. 

She says these prices are inching toward $16 per MMBTu (million British thermal unit) or the fuel cost, translating to higher electricity prices to the detriment of consumers. 

As such, Cayetano renewed her call to her colleagues to take a patriotic stand to prioritize indigenous gas resources by passing SB No.2793. She said the proposed legislation will ensure that the country will not be dependent on foreign fuel. 

“Let's take a stand. Prioritize indigenous (natural gas). Support indigenous. And buy indigenous. It ensures a continuous and stable energy supply in the country, even or despite unpredictable events occurring in the global market,” said Cayetano, chairperson of the Senate Committee on Energy. 

Data from the natural gas market however shows Malampaya gas costs only $12.8 per MMBtu while LNG is currently at $15.3 inclusive of all regasification and other costs to generate power. What's worse is that LNG prices are expected to go even higher as winter approaches. 

Earlier, the lady lawmaker said Senator Sherwin Gatchalian erroneously claimed that LNG costs only $10.5 per MMBtu. 

Cayetano said contrary to Gatchalian’s theories, SB No.2793 will incentivize the full exploration and development of the country’s indigenous natural gas resources to address energy security concerns using Filipino gas first. 

She lamented that the country’s indigenous gas resources had been neglected through the years following the discovery of the Malampaya wells off Palawan province. 

She says the proposed law is key to revitalizing indigenous gas exploration, which has been nearly abandoned because of the absence of clearcut policies. 

"From 150 wells in the 1970s, there have been no additional drilling efforts since 2019. Are we going to let this industry die? Are we going to be dependent on imported natural gas?” the solon from Taguig City said. 

“This is a no brainer. Saan ka naman nakakita ng bansa na inuna pa ang imported; umasa na lang sa imported, bagamat meron namang sariling supply? 

(Where have you seen a country that prioritized imported gas; relied on it, despite having its own supply?) 

"Let's not allow our failure in the agri sector to happen in the energy sector. Let's take a moment and think about that," Cayetano said. 

She says indigenous gas is the best energy solution because it is readily available, owned by the Filipino people and is a major source of state revenue, with 60 percent of Malampaya proceeds remitted to the government. 

“Simply put, it’s Filipino gas for the Filipino people," she concluded.