LNG terminals needed before Malampaya supply runs dry - Gatchalian

Senator Win Gatchalian has set in motion the Senate deliberations on a measure that will further develop the natural gas industry, providing for a replacement of the Malampaya deep water gas-to-power project even before its supply runs out and avert possible rotational brownouts beginning 2022.

He said that Senate Bill No. 1819 was introduced in anticipation of the nearing depletion of gas output from Malampaya-Camago wells and that natural gas is a good transition fuel. The Senate Energy Committee chaired by Gatchalian will conduct its first Senate hearing on the proposed measure tomorrow, January 5, 2021.

"The output of the gas will start going down by 2024. The direction of the Department of Energy (DOE) is to encourage the private sector to build receiving terminals for imported liquefied natural gas (LNG)," he 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," Gatchalian.

The Malampaya project fuels five power plants which comprise 20.0% of the installed capacity of the Luzon grid, according to the 2019 Department of Energy (DOE) Power Statistics, and serves 53.75% of Meralco's electricity demand.

In addition to the declining reserves is the expiration of Malampaya's service contract in 2024.

The DOE issued a circular in November 2017 outlining the regulations to be followed by all stakeholders in the downstream natural gas industry.

The senator, however, said the DOE's issuance needs 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," said Gatchalian.

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Pagtatatag ng LNG terminals kailangang itaguyod kapalit ng Malampaya - Gatchalian

Nakatakdang talakayin sa Senado bukas ang isang panukalang magtataguyod ng industriya ng natural gas sakaling tuluyan nang magsara ang Malampaya deep water gas-to-power project kapag nawalan na ito ng suplay at posibleng maging sanhi ng rotational brownouts sa susunod na taon.

Ang paghahain ng Senate Bill No. 1819, ayon kay Gatchalian, ay isang hakbang para sa paghahanda sa napipintong pagkaubos ng suplay ng gas mula sa Malampaya-Camago wells.

Pangungunahan ni Gatchalian ang pagdinig bukas bilang chairman ng Senate Energy Committee.

"Inaasahan ang pagbaba ang suplay ng gas mula sa Malampaya sa taong 2024 at bilang paghahanda, hinihikayat ng Department of Energy (DOE) ang pribadong sector na magtayo ng receiving terminals para sa mga imported liquefied natural gas (LNG)," ani Gatchalian.

"At dahil wala pa tayong natutuklasang mapagkukunan ng suplay ng gas, mapipilitan tayong mag-angkat ng LNG upang masiguro ang patuloy na operasyon ng 3,200-megawatt na mga planta ng kuryenteng umaasa sa suplay mula sa Malampaya," paliwanag ni Gatchalian.

Lima ang plantang sinusuplayan ng Malampaya project at ito ay kumakatawan sa 20 porsyento ng kuryenteng nagmumula sa Luzon grid batay sa impormasyon ng Department of Energy (DOE) Power Statistics noong 2019 at nagsu-suplay ng 53.75 porsyentong pangangailangan ng Meralco.

Dagdag sa suliraning kinakaharap sa Malampaya, bukod sa natutuyo nitong suplay, ay ang pagwawakas ng service contract nito sa taong 2024.

Naglabas ang DOE ng circular noong Nobyembre 2017 na bumabalangkas ng mga regulasyong dapat sundin ng mga stakeholders sa industriya ng downstream natural gas.

Subalit kinakailangan itong magkaroon ng kaukulang batas upang ganap na masaklaw ang lahat ng aspeto sa industriya ng midstream natural gas katulad ng transportasyon, transmission, storage, at marketing ng natural gas sa orihinal o liquefied nitong anyo.

"Dahil masalimuot ang midstream natural gas industry, kailangan ng isang komprehensibong batas upang mapunan ang mga puwang at mapaigting pa ang mga umiiral na mga polisiya. Kailangan natin ito upang maisulong ang potensyal ng natural gas bilang isa sa mga pangunahing mapagkukunan ng suplay ng enerhiya ng bansa," ani Gatchalian.