President Ferdinand “Bongbong” Marcos Jr. has signed a new law aimed at advancing the development of the Philippine natural gas industry. Signed on January 8, Republic Act No. 12120 seeks to promote natural gas as a safe, efficient, and cost-effective energy source. It also emphasizes the importance of natural gas in ensuring the country’s energy security.
The law focuses on establishing the Philippine Downstream Natural Gas Industry (PDNGI), which will support the use of natural gas as a reliable fuel for power plants. This move is expected to play a key role in maintaining the nation’s energy security.
Additionally, the new law encourages the conversion of existing fossil-fuel-powered equipment and facilities to natural gas, provided the conversion is technically and financially viable.
The Department of Energy (DOE) will take the lead in regulating the development of natural gas aggregation in the country. Aggregation refers to the process of sourcing indigenous natural gas, combining it with imported liquefied natural gas (LNG), and selling it to domestic or international buyers.
The DOE will also have the authority to evaluate, approve, and issue permits for the siting, construction, operation, and maintenance of PDNGI facilities. This includes permits for facility expansion, modification, rehabilitation, decommissioning, and abandonment.
Under the new law, PDNGI facilities will be designed and built to accommodate both indigenous and imported natural gas, following DOE guidelines. The facilities will also undergo evaluation to determine eligibility for incentives under the Strategic Investment Priority Plan.
Furthermore, the law sets out that all regulations must align with both local and internationally recognized natural gas industry standards.
The law also aims to stimulate the development of power and non-power uses of natural gas, including applications in the commercial, industrial, residential, and transport sectors, which will help diversify the country’s energy sources.
This move is seen as a step forward in ensuring a sustainable and secure energy future for the Philippines.
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