The Department of Energy (DOE) has finalized the implementing rules and regulations (IRR) for Republic Act No. 12120, the Philippine Natural Gas Industry Development Act, aiming to strengthen the country’s local natural gas sector.
The 78-page IRR prioritizes the use of indigenous natural gas, especially for power generation, over imported sources to enhance energy security.
The Malampaya gas field, which currently supplies 20% of Luzon’s power, remains the country’s sole commercial natural gas source and has contributed over $13.8 billion to the government.
The DOE will also mandate generation companies to source a minimum percentage of their power demand from local natural gas.
Signed into law in January, the measure is expected to spur exploration and development in the largely untapped natural gas industry and reduce dependence on volatile foreign energy markets.
Source: PhilNews24 | April 7, 2025