The House Committee on Energy chaired by Deputy Majority Leader and Pampanga Representative Juan Miguel Macapagal Arroyo approved the Substitute Bill to House Bill 3031, seeking to ordain the development of the Philippine downstream natural gas industry and consolidate for the purpose, all laws relating to the transmission, distribution, as well as supply of natural gas.
Principally authored by Speaker Lord Allan Velasco, HB 3031 was first discussed in the committee on November 13, 2020, during which a technical working group (TWG) was created headed by bill co-author and Zamboanga Sibugay Representative Sharky Palma II, to craft its substitute bill.
“The substitute bill was extensively discussed during the two committee and three TWG meetings on the measure.”
In his opening remarks, Arroyo said the substitute bill was extensively discussed during the two committee and three TWG meetings on the measure.
“All issues had been meticulously discussed and addressed,” the veteran legislator said.
In the explanatory note of HB 3031, Velasco said the natural gas industry is still a relatively young industry.
“It is vital that we introduce a proper legislative framework that would provide favorable conditions towards a healthy natural gas industry in the country.”
“It is vital that we introduce a proper legislative framework that would provide favorable conditions towards a healthy natural gas industry in the country. This would then in turn lead towards rapid economic development, while respectfully practicing sustainable development towards a brighter future,” the veteran legislator said.
The bill would provide a framework for the development of the Downstream Natural Gas Industry and its transition from an emerging to a mature industry status and competitive natural gas market, as well as define the responsibilities of various government agencies and private entities in furtherance of this national goal.
The State would ensure safe, secure, reliable, transparent, competitive, and environmentally responsible operation of the Philippine Downstream Natural Gas Industry (PDNGI) value chain.
As defined in the bill, natural gas refers to “gas obtained from boreholes and wells consisting primarily of a mixture of methane, ethane, propane and butane with small amounts of heavier hydrocarbons and some impurities, consistent with the definition provided in the Philippine National Standard (PNS) or International Organization for Standardization (ISO)”.
All activities of the Department of Energy (DOE), Energy Regulatory Commission (ERC) and other concerned government agencies relevant to the development and regulation of the PDNGI would be in accordance with the proposed “Philippine Downstream Natural Gas Industry Development Act”.
In a previous TWG meeting, APEC Part-list Representative Sergio Dagooc and PHILRECA Party-list Representative Presley de Jesus sought the inclusion of a safeguard mechanism in the bill to ensure that consumers would not bear the burden of high generation charges in the natural gas industry.
