By
Lenie Lectura - November 2, 2017
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.
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