Policy to pave way for setting up of LNG facility

In addition, Marcos said the implementation of the PNGR is hoped to pave the way in meeting Secretary Alfonso Cusi’s target to have the ground breaking for an LNG import facility by 2018. (Photo: Department of Energy Philippines/Facebook)

MANILA— The Department of Energy (DOE) is finalizing the guidelines of the Philippine Natural Gas Regulation (PNGR), a policy issuance that would govern the entry and development of liquefied natural gas (LNG) terminal and its related facilities in the Philippines.

“The PNGR will serve as the regulatory framework in the promotion of the Philippines as an LNG emerging market characterized by a liberalized/competitive environment and market-based pricing,” said DOE Undersecretary Donato D. Marcos.

In addition, Marcos said the implementation of the PNGR is hoped to pave the way in meeting Secretary Alfonso Cusi’s target to have the ground breaking for an LNG import facility by 2018.

With the policy in place, the Philippines can readily start importing LNG to safeguard the anticipated drop in the supply of the Malampaya natural gas in 2022 coupled with the forthcoming termination of its concession by 2024.

The recent public consultation (Pub-con) drew clarifications on implementing guidelines concerning permit application, permitting and clearances of other government agencies, reporting requirements and import and supply requirements.

Also discussed during the pub-con were gas quality standards, import accreditation validity period, anti-flipping protection, the effect of Executive Order 30, the third party access (TPA), transmission and distribution of gas, aggregation, incentives and the gas mix.

Some 47 companies and institutions representing local and foreign stakeholders as well as prospective businesses interested in venturing into the natural gas industry in the country attended the consultations.

Previous public consultation focused on the regulatory framework covering the definition of terms, structure and operations of upstream, ownership, franchising, roles and responsibilities of the DOE and the operator, competition and gas pricing policy, incentives, insurance, establishment of evaluation committee and other relevant laws.

The DOE encourages the public to engage in making the proposed policy more comprehensive by sending their comments and suggestions to their official email until November 2017. A copy of the proposed policy is downloadable at the DOE official website.