The Department of Energy (DOE) on Thursday announced the completion of the second part of the Natural Gas Development Plan (NGDP), a framework that will aid in the development of the Philippine Downstream Natural Gas Industry (PDNGI).
The NGDP is part of the documents completed under Phase 2 of the Gas Policy Development Project (GPDP) and was turned over to the DOE by the United States Department of State, Bureau of Energy Resources on September 22.
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 11 agencies and two 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 Abad.
The DOE forged an agreement with the University of the Philippines Statistical Center Research Foundation Inc. in December 2018 to start the US-funded GPDP to help the DOE 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,” Abad added.
As of December 2021, the DOE has approved the application of six LNG terminal and regasification projects and is envisioned to start operations between 2023 and 2025. These are FGen LNG Corp., Linseed Field Corp., Energy World Gas Operations Philippines, Shell Energy Philippines, Vires Energy Corp., and Luzon LNG Terminal.