Paolo Duterte, 3 others file bill on development of Philippines’ natural gas industry

Davao City Representative Paolo Duterte and several other lawmakers have filed House Bill No. 4097 which aims to put in place a regulatory framework that will aid the transition of the country’s emerging natural gas industry to a fully developed sector.

Duterte, along with Benguet Representative Eric Yap, and ACT-CIS party-list representatives Edvic Yap and Jeffrey Soriano said Congress must pass the bill to anticipate the “elevated demand for electricity” resulting in the country’s rapid post-pandemic growth.

The bill defines the responsibilities of the various government agencies and private entities in furthering the development and ensuring a level of playing field in the Philippine Downstream Natural Gas Industry (PDNGI).

“Most importantly, this bill seeks to ensure the delivery of  secure, sustainable, sufficient, affordable and environment-friendly energy to all economic sectors in the country,” the authors of the bill said.

The lawmakers said to encourage the investments needed for the construction, operation and maintenance, and conversion to natural gas facilities,  such projects as certified by the Department of Energy (DOE),  shall be included in the Strategic  Investment Priority Plan (SIPP) for the next 10 years following the enactment and effectivity of the bill into law.

The bill also stated that the operation of LNG terminals, natural gas transmission systems, and natural gas distribution systems, including own-use facilities, are considered “energy projects of national significance” whose implementation shall not be subject to unnecessary administrative processing delays.

It stated that all matters concerning abuse of market power, cartelization, and any anti-competitive or discriminatory behavior are subject to the quasi-judicial powers of the Philippine Competition Commission (PCC).

It added that it outlines the provisions governing the access of third-party users to LNG facilities; the standards on facilities, product and safety practices;  responsibilities of permit holders and operators; and rules on anti-competitive behavior.

Under the measure, the DOE is tasked to prepare the Natural Gas Industry Development Plan (NGIDP), while the Energy Regulatory Commission (ERC) is responsible for setting the rates and related terms and conditions of service for the industry, among their other functions to promote the development of the PDNGI.

The other agencies involved in developing and setting regulatory standards for the PDNGI are the Department of Environment and Natural Resources (DENR), Department of Health (DOH) and the  Department of Trade and Industry (DTI). —Richa Noriega/NB, GMA News