Press Release
September 19, 2020

Gatchalian pushes for replacement fuel to Malampaya to avert possible brownouts

Senator Win Gatchalian expressed concern over the nearing depletion of gas output from the Malampaya natural gas field which is the second biggest source of electric power in the island of Luzon.

Gatchalian said the absence of replacement fuel could threaten energy security and might lead to possible rotational brownouts. The Malampaya project has been supplying fuel to the Luzon electricity grid, servicing for nearly two decades an approximate 21 percent of the national demand for electricity. It is expected to run dry by 2024.

In this light, the chairman of the Senate Committee on Energy filed Senate Bill No. 1819 for the country to provide a national energy policy and framework for the development and regulation of the Philippine midstream natural gas industry.

"We're racing against time. If we fail to act now, we could be experiencing anew a debilitating rotational brownout by 2024 once our power supply from the Malampaya gas field is depleted," said Gatchalian.

The lawmaker cited the power crisis in 1990s when Metro Manila and several provinces in the Luzon power grid experienced rotating brownouts of up to four hours daily due to insufficient electrical generating capacity.

Gatchalian noted the need of a complementary law to cover the aspects of the midstream natural gas industry, including the transportation, transmission, storage, and marketing of natural gas in its original or liquefied form or commonly known as liquefied natural gas or LNG.

The midstream natural gas industry covers companies that specialize in operating tanker ships or marine vessels to deliver natural gas to LNG terminals, pipelines or transmission systems and storage facilities.

Several local and foreign companies in the past have expressed interest in putting up integrated LNG facilities in the country. Such facilities include storage, regasification, and transmission.

The LNG terminal projects should be in place before the anticipated depletion of gas output from Malampaya in 2024.

"The proposed Midstream Natural Gas Industry Development Act will encourage private capital and foster an open and fair competitive market while at the same time ensure safe, reliable and environmentally responsible operation of LNG terminals," he said.

Gatchalian said the proposed legal framework for the midstream natural gas industry will also ensure consumer protection as it will mandate a transparent and competitive pricing of services.

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Para iwas brownout, paghahanap ng kapalit ng Malampaya dapat madaliin - Gatchalian

Nagpahayag ng pangamba si Senador Win Gatchalian na posibleng manumbalik ang rotational brownouts, lalo na sa kalakhang Luzon, sakaling maubos na ang natural gas na sinusuplay ng Malampaya natural gas field, na ginagamit ng ilang planta sa bansa sa nakalipas na mahigit dalawang dekada.

Ang Malampaya natural gas field, pangalawang pinakamalaking pinagkukunan ng suplay ng natural gas ng Luzon upang gumawa ng kuryente, ay napipintong maubos na pagsapit ng 2024.

Kaya bago pa man mangyari ito, naghain na ng panukalang batas si Gatchalian - Senate Bill 1819 na nagsusulong sa isang "national energy policy and framework for the development and regulation of the midstream natural gas industry." Sa madaling salita, layon ng panukala na manghikayat ng mga mamumuhunan sa pribadong sektor para mapalawak pa ang merkado na papabor sa mga ordinaryong mamimili.

Kabilang sa midstream natural gas industry ang transportasyon at pag-iimbak ng natural gas o Liquified Natural Gas (LNG). Sakop ng industriya ang mga tanker ship na naghahatid ng natural gas sa mga terminal ng LNG o kaya'y mga imbakan nito sa ibat ibang bahagi ng bansa.

"Kailangan nating magmadali dahil baka magsisi tayo sa huli kung hindi tayo kikilos ngayon pa lang at para na rin maiwasan natin ang rotational brownout pagsapit ng 2024 sakaling wala na tayong mapagkunan na suplay mula sa Malampaya gas field," ani Gatchalian.

Inihalintulad ng senador ang senaryo sa naranasang krisis sa kuryente noong 1990s kung saan ang buong Metro Manila at kalapit na mga probinsya ay nagkaroon ng arawang brownout na hindi bababa sa apat na oras dahil sa kawalan ng suplay ng kuryente.

"Ang pagkakaroon ng Midstream Natural Gas Industry Development Act ay mag-uudyok ng mga mamumuhunan sa industriyang nang sa gayon ay makakaasa tayo ng sapat na suplay ng kuryente sa murang halaga," paliwanag ni Gatchalian.

Sa mga nakaraang taon, dumarami na ang mga local at foreign companies na nagpahayag ng interest na magtayo ng integrated LNG facilities sa bansa.

Sang-ayon si Gatchalian sa pagkakaroon ng mga LNG terminal projects at sinabi pa nya na dapat ay maisaayos ito bago pa ang napipintong pagkaubos ng suplay mula sa Malampaya sa 2024.

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