Energy dept issues draft rules on PHL natural-gas industry development


The Department of Energy (DOE) released on Thursday a draft of the rules on the country’s natural-gas industry.

The draft circular, which shall be known as the Philippine Natural Gas Regulation (PNGR), establishes the rules governing the supply, location, design, construction, expansion, rehabilitation, modification, operation, maintenance, safety and commercial arrangement of the value chain of the Philippine Natural Gas Industry (PNGI).

“The state shall ensure that the PNGI, from its emerging state, will be developed into a matured market, enabling the country to achieve greater energy security and sustainability,” the draft circular stated.

Among others, the PNGR involves the development and implementation of policies on the promotion, exploration, development, production of indigenous natural gas deposits and importation of liquefied natural gas (LNG) for local and foreign demand, including third-party access  to LNG-related facilities and pipeline for the development of the Philippines as LNG trading and transshipment hub of the Asia-Pacific region.

The draft circular also involves the policies on the transportation of natural gas and its related facilities. These include indigenous gas from production platform to gas- processing plant; imported LNG from the connection point of the loading arm to the LNG-related facilities; natural gas received from the last connection point of gas-processing plant to the transmission; distribution and spur line-metering equipment; an LNG from the filling connection of the storage up to the satellite LNG-related facilities.

The structure of the value chain shall be divided into upstream and downstream operations.

Upstream constitute the promotion, exploration, development, production and sale of indigenous gas. Downstream consists of importation storage, regasification, transportation, trading and other related activities of natural gas from load port to customers.

The DOE shall have the overall responsibility on the promotion and supervision of the development and operation of the PNGI. It will also issue permits and utilize different methods of accepting project proposals.