PRESIDENT Ferdinand Marcos Jr. has signed into law Republic Act No. 12120, aimed at promoting the development of the Philippine natural gas industry.

The legislation consolidates existing laws to establish a comprehensive framework for the exploration, development, and utilization of natural gas resources in the country.

The new law, which was signed on January 8 and uploaded to the Official Gazette on January 14, seeks to enhance energy security, attract investments, and ensure environmental sustainability by streamlining regulatory processes and providing incentives for stakeholders in the natural gas sector.

Principally authored and sponsored by Senate Energy Committee Chairperson Senator Pia S. Cayetano, the Philippine Natural Gas Industry Development Act aims to enhance energy security for future generations by creating an investor-friendly environment that encourages the exploration of indigenous natural gas resources.

The new law positions natural gas as a transition fuel toward renewable energy while addressing the country’s long-term power supply challenges. It also includes provisions ensuring transparency and fair pricing for consumers, effectively balancing energy security and consumer welfare.

Citing the stability and generally lower prices of indigenous natural gas compared to the volatility of imported sources, Sen. Cayetano emphasized that securing a steadier, more reliable local supply will reduce our vulnerability to global disruptions and address future energy demands.

“With more than half of our energy requirements being imported, we are clearly vulnerable to geopolitical conflicts,” the Senator said, stressing the need to address our country’s energy security. To illustrate this vulnerability, Sen. Cayetano highlighted records showing the volatility of imported natural gas, noting its price fluctuations over the past 14 years, which surged significantly during the Ukraine war.

“Also based on the Energy Department’s 2022 Primary Energy Mix, 63.2 percent of our energy comes from oil and coal. As the country moves towards renewable energy sources, we need to find additional baseload resources, aside from oil and coal, which are less harmful to the environment,” she further noted.

“That is the question we all must face right now: how important is energy security to us,” she further raised, noting the decline in natural gas exploration activities over the past decades – from more than 150 wells drilled in the 1970s to zero since 2019 – while neighboring countries like Indonesia continue to significantly produce more indigenous natural gas.

“Malampaya was supposed to be the first of many producing gas fields in the Philippines, but it turned out to be the only one. The country needs more Malampayas: we barely have one left,” added the senator.

The former chairperson of the Senate Committee on Sustainable Development Goals (SDGs), Innovation, and Futures Thinking, Sen. Cayetano underscored the law’s vital role in driving progress toward the SDGs, including clean energy, good health, quality education, gender equality, and sustainable communities.

The senator also thanked the President for signing the landmark bill into law: “This is a significant step toward energy security. By enacting the Natural Gas Industry Development Act, we move closer to our vision of a more energy-secure Philippines that harnesses its own natural resources for the benefit of the Filipino people.”

“With this law, we empower families, we empower the Filipino people,” she said.

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