MANILA – President Ferdinand “Bongbong” Marcos Jr. has signed into law a measure establishing a framework for the development of the country’s natural gas industry.
According to a Palace media advisory, the Chief Executive signed Republic Act (RA) 12120 or the Philippine Natural Gas Industry Development Act on January 8.
The new law seeks to establish the Philippine Downstream Natural Gas Industry and increase the share of natural gas in the country’s energy mix by promoting it as a safe, efficient, and cost-effective source of energy and an indispensable contributor to energy security.
The law also offers incentives to boost investments in the Philippine natural gas industry by allowing the entry of investors under a system of competition, transparency and fair trade, and by providing responsive policy support, with the end goal of attaining low cost energy prices pursuant to RA 7638 or the Department of Energy Act of 1992.
The measure is also seen to help the Philippines meet the increasing local demand for fuel, and develop the country as a Liquefied Natural Gas (LNG) trading and transshipment hub within the Asia-Pacific Region.
The Department of Energy shall be the lead agency to determine the need for and regulate the development of aggregation in the country. Aggregation is defined as the procurement of indigenous natural gas, combining it with imported LNG, and selling the aggregated gas to gas buyers in the Philippines or abroad.
DOE is authorized to evaluate, approve, and issue the permits necessary for the siting, construction, operation and maintenance, expansion, modification, rehabilitation, decommissioning, and abandonment of any PDNGI facility or activity.
The operation of the PDNGI facility shall undergo an evaluation process for possible inclusion and entitlement of incentives under the Strategic Investment Priority Plan.
Regulations shall be consistent with applicable Philippine and internationally accepted natural gas industry standards, the law indicated.
Under the Marcos administration, the government has adopted a more aggressive stance to increase renewable energy in the country./PN
