Philippine Downstream Natural Gas Industry (PDNGI)
22 September 2022
Taguig City – The Department of Energy (DOE) and the University of the Philippines Statistical Center Research Foundation, Inc. (UPSCRFI), through its Gas Policy Development Project (GPDP), have completed the Natural Gas Development Plan (NGDP) that would help guide regulators, policymakers, and investors on the development of the Philippine Downstream Natural Gas Industry (PDNGI).
The NGDP is part of the documents completed under Phase 2 of the GPDP and was turned over to the DOE by the U.S. Department of State, Bureau of Energy Resources today, September 22, 2022. It contained information on the existing legal framework, gas demand outlook, ongoing projects, membership of the Technical Committee on Downstream Natural Gas Standards on Products, Facility, and Code of Practice, way forward plans, and the GPDP technical and research products.
Other documents include the proposed regulatory process containing recommendations to government agencies and local government units (LGUs) involved in the PDNGI value chain. These include technical, administrative, and regulatory guidance for eleven (11) agencies and two (2) LGUs, a simplified process for securing permits and clearances, documentary requirements, and technical standards to comply with.
“We underscore the importance of developing our natural gas industry. As part of our strategy and ensuring energy security, we need to strengthen our strategies and policies. And while we have an existing Department Circular governing the PDNGI, these documents will aid us in advancing the development of the downstream natural gas industry, including the role of Liquefied Natural Gas in our energy system,” said DOE Director Rino E. Abad.
The DOE forged an agreement with the UPSCRFI in December 2018 to start the United States-funded GPDP to help the Department prepare policy recommendations that promote clean energy. GPDP 1 was completed and turned over to the DOE on February 20, 2020.
It contained four documents which include: The Philippine Downstream Natural Gas Industry: LNG Investor’s Guide; GPDP’s Financial and Technical Recommendations for the Review of LNG Project Applications; Research Study on Market Profiling with Emphasis on the Use of Liquefied Natural Gas to Power Economic Zones; and the GPDP Completion Report highlighting the Project accomplishment for Phase 1.
“With the challenges facing the current supply of our natural gas from the Malampaya gas field, this NGDP is also timely in providing our prospective investors’ guidance and policy framework, legal requirements, and incentives in putting up LNG facilities and other infrastructure,” Dir. Abad added.
As of December 2021, the DOE has approved the application of six (6) LNG terminal and regasification projects and is envisioned to start operations between 2023 and 2025. These are FGen LNG Corporation, Linseed Field Corporation, Energy World Gas Operations Philippines, Shell Energy Philippines, Vires Energy Corporation, and Luzon LNG Terminal.
As a legacy project, the GPDP 2 also created a website, www.gpdp.online, that gathers all project activities and outputs for easier access beyond project completion. The website contains references and reports on natural gas, which can be readily downloaded.