President Ferdinand R. Marcos Jr. has signed into law a measure establishing a framework for the development of the country’s natural gas industry.
Marcos signed Republic Act (RA) 12120 or the Philippine Natural Gas Industry Development Act on Jan. 8, a copy of which was uploaded to the Official Gazette on Tuesday.
The new law seeks to establish the Philippine Downstream Natural Gas Industry and increase the share of natural gas in the country’s energy mix by promoting it as a safe, efficient, and cost-effective source of energy and an indispensable contributor to energy security.
Likewise, RA 12120 offers incentives to boost investments in the Philippine natural gas industry by allowing the entry of investors under a system of competition, transparency and fair trade, and by providing responsive policy support, with the end goal of attaining low cost energy prices pursuant to RA 7638 or the Department of Energy Act of 1992.
The new law is also seen to help the Philippines meet the increasing local demand for fuel, and develop the country as a Liquefied Natural Gas (LNG) trading and transshipment hub within the Asia-Pacific Region.
Under the Marcos administration, the government has adopted a more aggressive stance to increase renewable energy in the country.
‘Significant step’
Senator Pia Cayetano thanked President Marcos for signing the landmark legislation, saying “this is a significant step toward energy security.”
“By enacting the Natural Gas Industry Development Act, we move closer to our vision of a more energy-secure Philippines that harnesses its own natural resources for the benefit of the Filipino people,” Cayetano said in a news release.
“With this law, we empower families, we empower the Filipino people."
Cayetano, chairperson of the Senate Energy Committee, said she principally authored and sponsored the bill in the Senate.
Citing the stability and generally lower prices of indigenous natural gas compared to the volatility of imported sources, Cayetano said securing a steadier, more reliable local supply will reduce the country’s vulnerability to global disruptions and address future energy demands.
"With more than half of our energy requirements being imported, we are clearly vulnerable to geopolitical conflicts," she said. By Darryl John Esguerra
Article courtesy of the Philippine News Agency