News Release
August 22, 2012
References: Bayan Muna Reps. Teddy Casiño, 09209035683, Neri Colmenares
Bayan Muna solons say expanded use of Malampaya natural gas and subsidies can be used to stop oil price hikes
Party list representatives Teddy Casiño and Neri Colmenares (Bayan Muna) today said that aside from cutting value added tax (VAT) imposed on basic utilities, from 12% to 6% to arrest run away oil price hikes, in the short term the Aquino administration can expand the use of Malampaya natural gas to offset reliance on imported fuel and use subsidies to lower prices of oil.
Casiño said one very good use for our Malampaya resources is that we can expand its use for mass transport via compressed natural gas (CNG) buses, and other vehicles.
The progressive solon said that while we groan under the yoke of overpriced fuel from oil firms, we have trillions of cubic feet of natural gas from Malampaya and recently, from Recto Reed, which could help meet our electricity generation requirements and even alleviate the riding public from high transportation costs.
If tapped, Malampaya, which produces trillions of cubic feet of natural gas, will certainly be a big boost to our energy sector. The remaining gas reserves of Malampaya are estimated to be 2 trillion cubic feet, still a lot of gas despite ten years of continuous extraction. Taking into account the reported 4.66 trillion cubic feet of gas in Rector Reed, these huge natural gas sources could liberate us from thr stranglehold of the Big Three oil firms and foreign players in the energy sector. It must be ensured though that it is developed by the government and a Filipino-owned and controlled company, the gas is subject to price regulation, and natural gas plants are built by the government.
The public transportation sector and our power plants could very well use natural gas which is fifty percent cheaper than the oil provided by the Big Three oil firms," Casiño added.
Colmenares for his part said that even with this great advantage "the gas pipeline which will bring compressed natural gas (CNG) to our cities has not even been built. Government should build this plant now, instead of waiting for another energy crisis to happen as what happened to Agus dam and the Mindanao power shortage. PNOC President Cailao has recently announced the initiation of bids of this long delayed project. We have to demand complete transparency lest we suffer the fate of Malampaya, the Agus rehabilitation project, the power barges, the Mindanao energy crisis, the oil deregulation law and the EPIRA— which have burdened the Filipino people,"
"The delay in the building of the gas pipeline citing budget problems shows the lack of foresight of the gov't, choosing to squander our resources which would have eased the lives of many of our consuming public. We must make sure that the planned extension of the Malampaya contract to another 13 years will not push through and the potential extraction of natural gas in Recto Reed will not go the same way as the various energy contracts that impoverishes our people," Colmenaes ended. # # #
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