Department Circular No. 95-06-006
POLICY GUIDELINES ON THE OVERALL
DEVELOPMENT AND UTILIZATION OF NATURAL GAS IN THE
WHEREAS, Section 2 of
R.A.
7638, otherwise known as the “Department of Energy Act of 1992,” declares,
among others, the policy of the State to ensure a continuous, adequate, and
economic supply of energy with the end in view of ultimately achieving
self-reliance in the country’s energy requirements through the integrated and
intensive exploration, production, management, and development of the country’s
indigenous energy resources, without sacrificing ecological concerns;
WHEREAS, Sections 4, 5(a) and 59b) of
R.A. 7638 provide that the
Department of Energy (Department) is
mandated to formulate policies for the planning and implementation of a comprehensive
program for the efficient supply and economical use of energy consistent with
the approved national economic plan, and to provide a mechanism for the
integration, rationalization and coordination of the various energy programs of
the Government with a preferential bias for environment-friendly, indigenous,
and low-cost sources of energy;
WHEREAS, among the indigenous energy resources which include fossil
fuels such as petroleum, natural gas and gas liquids, geothermal resources, and
other less conventional existing and potential forms of indigenous resources,
natural gas been recognized as environment-friendly, indigenous, and low-cost
source of energy;
WHEREAS, Section 5(e) of
R.A. 7638 authorizes the
Department to regulate private sector activities
relative to energy projects provided it shall endeavor to provide for an environment
conducive to free and active private sector participation and investment in all
energy activities;
NOW, THEREFORE, the
Department hereby declares the following
policy guidelines on natural gas development and utilization:
SEC. 1. The government shall
promote the role of natural gas into the energy supply mix of the country by
creating the conditions for a Philippine Gas Industry that economically serves
a broader variety of users, including efficient gas-fired power plants,
industrial, commercial and residential customers.
SEC. 2. The
Malampaya/Camago gas field shall serve as
the foundation for the Philippine Gas Industry by planning and developing it to
primarily supply efficient gas-fired power plants starting year 2001.
SEC. 3. The Philippine Gas Industry
shall be consistent with the government’s overall policy of encouraging private
sector participation and reducing the direct involvement of government in the ownership
of assets and facilities. The role of
government will be confined to that of policy direction and regulation, unless
government involvement is demonstrated to provide substantial reduction in the
cost of natural gas and economic benefit to the people.
SEC. 4. Government regulation of
the development and operation of the Philippine Gas Industry facilities shall
be structured to facilitate the safe operation and growth of the industry while
ensuring equitable non-discriminatory access to all industry participants.
SEC. 5. The facilities of the
Philippine Gas Industry shall be constructed and operated in compliance with
all existing Philippine environmental regulations and with international safety
standards.
SEC. 6. The development of the
Philippine Gas Industry shall primarily promote the policy of utilizing
indigenous energy resources to stabilize energy prices.
SEC. 7. This Department Circular
shall take effect immediately a day after its complete publication in a
national newspaper of general circulation.
FRANCISCO L. VIRAY
Secretary
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