MANILA’s joint patrols with its allies in the South China Sea show resistance to Beijing’s “bullying” in the waterway amid rising tensions over its disputed features, a Philippine senator said on Monday.

“It shows that we who believe in the rule of law will not tolerate any form of violence, threat, or intimidation,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement.

“I do think that these help put China in her place.”

The armed forces of five countries conducted joint maritime exercises in a portion of the South China Sea on Saturday as China carried out its own military drills in the disputed waterway, Reuters reported on Saturday.

The exercises involving the Philippines, United States, Australia, Japan and — for the first time — New Zealand took place in Manila’s exclusive economic zone and sought to improve the militaries’ interoperability, the Philippine armed forces said in a statement.

Philippine military chief General Romeo S. Brawner earlier said the patrol affirmed the right to freedom of navigation and overflight over the South China Sea.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Australia’s Department of Defense said the drills demonstrated “our collective commitment to strengthen regional and international cooperation in support of a peaceful, stable and prosperous Indo-Pacific,” Reuters reported.

Australia has “consistently pressed China on peace and stability in the South China Sea and Taiwan Strait,” Australian Foreign Minister Penny Wong said in a speech to the United Nations General Assembly on Saturday.

“We have welcomed the resumption of leader and military level dialogue between the US and China,” Ms. Wong said, according to a transcript.

According to the US Naval Institute website, the joint patrol saw participation from vessels such as Manila’s BRP Antonio Luna, BRP Emilio Jacinto, while Washington’s USS Howard, Canberra’s HMAS Sydney, Tokyo’s JS Sazanami, and Wellington’s HMNZS Aotearoa.

Tensions between the Philippines and China have worsened in the past year as Beijing continues to block resupply missions to Second Thomas Shoal, where Manila has a handful of troops stationed at a beached vessel.

In 2016, a Hague-based arbitration court upheld the Philippines’ rights to its exclusive economic zone within the waterway. It rejected China’s claim to most of the sea based on a 1940s nine-dash line map that Philippine Foreign Affairs Secretary Enrique A. Manalo has said “had no basis in law.

Mr. Manalo in his speech before the UNGA at the weekend also pushed for the peaceful and diplomatic resolution of territorial disputes, citing the importance of upholding a rules-based international order. He also batted for support for the country’s bid for a non-permanent seat in the UN Security Council between 2027 and 2028.

Manila has been unable to enforce the ruling and has since filed hundreds of protests over what it calls encroachment and harassment by China’s coast guard and its vast fishing fleet.

Ms. Hontiveros urged Chinese government to abide by its commitments to the United Nations Convention on the Law of the Sea (UNCLOS) and the UN agreement on Marine Biological Diversity of Areas Beyond National Jurisdictions (BBNJ)

BBNJ entails international cooperation in promoting environmental impact assessments and capacity-building in the transfer of marine technology.

Last month, the US and French navies held war games in the Philippine Sea to advance their interoperability “in support of a free and open Indo-Pacific,” according to the US 7^th Fleet. 

Manilla, Washington, Ottawa and Canberra held their first joint military exercises in the South China Sea on Aug. 7 and 8 amid Beijing’s increased military buildup in the waterway.

Congress earlier passed a bill seeks to set up Philippine sea lanes and another establishing maritime zones to assert the country’s territorial claim over the South China Sea. Lawmakers have also passed a bill that tasks the government to draft a plan to manage marine and coastal resources to cut land and sea-based pollution and overfishing.

“It has always been clear that it is China who is provoking tensions in the West Philippine Sea — not us — so it is China who must stop her aggression,” Ms. Hontiveros said.

“These exercises demonstrate the commitment of the international community to uphold the rules-based order in the entire South China Sea.”

Manila and Beijing have resumed bilateral talks on easing tensions in the waterway, despite both sides insisting on upholding their claims over disputed features.

They have also traded accusations of ramming into each other’s vessels just after reaching a pact on resupply missions to a beached Filipino naval ship at Second Thomas Shoal. — John Victor D. Ordoñez with Reuters

PHILIPPINE President Ferdinand R. Marcos, Jr. on Monday said the StB GigaFactory, Inc.’s newly built battery manufacturing plant will pave the way for more investors in the renewable energy (RE) industry as the country tries to boost its share in the energy mix.

The facility could generate P5 billion in revenues for the government and 2,500 jobs when it hits full capacity in 2030, the President said at the inauguration of StB Gigafactory’s manufacturing plant for iron phosphate batteries in the Clark Special Economic Zone in Capas in Tarlac.

“The StB GigaFactory sets the stage for the Philippines to become a player in clean energy storage in our part of the world, in Southeast Asia, in our region,” Mr. Marcos said in his speech at the event, which was sent to reporters via e-mail.

“Your products could help entice more investors in renewable energy facilities in the country, the upstream and the downstream businesses that will come from this are just going to be tremendous.”

The Department of Energy last week said it has issued endorsements to eight RE projects and one battery energy storage system.

The Philippines aims to raise the share of RE in the energy mix to 25% by 2030 and to 50% by 2040 from the current 22%.

Mr. Marcos said the battery manufacturing plant is expected to produce two gigawatt-hours worth of batteries yearly, powering about 18,000 electric vehicles and nearly half a million home battery systems.

StB GigaFactory produces batteries for energy storage backup for solar photovoltaic for residential, commercial, and industrial use.

The company is the first locator in Filinvest Land, Inc.’s Filinvest Innovation Park in New Clark City in Capas, Tarlac. It hopes to export 70% of its output to Australia and Southeast Asia, with some of its output to be distributed within the Philippines.

The construction of the manufacturing plant was among the deals bagged during the ASEAN-Australia Special Summit in March, where Mr. Marcos secured about P86 billion worth of business deals.

The Maharlika Investment Fund is eyeing opportunities to invest in the renewable energy sector particularly in off-grid power and infrastructure, Maharlika Investment Corp. (MIC) Chief Executive Officer Rafael D. Consing, Jr. earlier said.

He has said the MIC plans to raise about $1 billion for energy projects on grid modernization, electricity distribution and new sources to “diversify supply and create price stability.”

Energy Undersecretary Sharon S. Garin has said battery technology is evolving fast enough for the Philippines to meet its RE targets. She said the agency was looking to attract more battery system companies to introduce these advanced systems for local energy projects.

“This facility runs in tandem with the Philippines’ renewable energy landscape, as we transition our country to renewable energy,” the President said.

“This certainly aligns with our plans to develop the country’s electric vehicle industry and produce locally made EVs and EV components, reducing our reliance on imported fuels.” — John Victor D. Ordoñez

By John Victor D. Ordoñez, Reporter

THE PHILIPPINE Petroleum Association (PPA) of the upstream oil and gas industry is pushing for the passage of a Senate bill that seeks to promote the production of indigenous natural gas and liquefied natural gas as the country explores new energy reserves ahead of the expected depletion of the Malampaya gas field.

PPA President Edgar Benedict C. Cutiongco said the industry supports Senate Bill No. 2793, “Philippine Natural Gas Industry Development Act,” as the measure prioritizes local natural gas sources over imported fuel.

“This aligns perfectly with our mandate to explore and produce indigenous natural gas,” he told BusinessWorld in a text message on Monday.

Under the Senate measure, the government is tasked to “hasten the exploration and development of indigenous natural gas and facilities and prioritize the use of indigenous natural gas over imported natural gas to help attain greater energy security.”

The measure is currently under plenary deliberation, while its counterpart measure, House Bill No. 8456 has been approved on third and final reading in August 2023.

Manila is under pressure to find new energy reserves as its only indigenous source, the Malampaya gas field, is set to run out of recoverable gas using current techniques by 2027. The field supplies at least a fifth of the country’s power requirements.

In May last year, President Ferdinand R. Marcos, Jr. extended the Malampaya Service Contract 38 to Feb. 22, 2039, giving operators a 15-year window to further exploit the field beyond the initial Feb. 22, 2024 expiration date.

The government is trying to boost renewable energy’s (RE) share in the country’s energy mix to 35% the 22% these account for. The country is also aiming for a 50% share of RE in the energy mix by 2040.

‘PROBLEMATIC’ PROVISIONS
In a statement on Sunday, Senate Ways and Means Committee Chairman Sherwin T. Gatchalian said consumers may be forced to pay higher prices of electricity under indigenous natural gas plants since power generated from these are generally more expensive.

“This is problematic because consumers will be forced to pay the higher price of electricity whenever ING (indigenous natural gas) is more expensive,” he said, citing the provision in the bill giving priority to ING over imported natural gas.

Section 21 of the bill provided that the procurement and utilization of indigenous natural gas will be prioritized over imported natural gas.   

“We need to ensure that every provision in this bill provides consumers with protection and would strengthen the whole energy sector and boost our economy.”

Mr. Gatchalian also referred to Section 6 of the proposed measure, which allows for the “full recovery of reasonable costs” incurred by power generators. He noted this is a “more lenient standard” compared to the “least cost” requirement outlined in the Electric Power Industry Reform Act.

To address this, the senator said the proposed measure should ensure that the Energy Regulatory Commission can protect consumers through the “least cost” standard when reviewing power supply agreements.