The Senate has approved Senate Bill No. 2793, or the Philippine Natural Gas Industry Development Act on its second reading.
In a report by Business World, the bill aims to enhance indigenous natural gas production as a transition fuel while the country moves toward renewable energy goals.
The Department of Energy (DOE) would lead the development of the downstream natural gas sector, as the country seeks alternatives to the Malampaya gas field, which supplies 20% of the nation’s power but faces depletion by 2027.
Additionally, Senate Bill No. 2793 appointed the Energy Regulatory Commission (ERC) to oversee government revenues from indigenous natural gas sales to power plants.
Under the bill, LNG storage and regasification terminals will not be tagged as public utility operations.
Meanwhile, qualified downstream natural gas projects will benefit from a VAT exemption on indigenous gas purchases and sales, as well as zero-rated VAT on local goods and services used in production, to encourage investment in the sector.
The Philippines is gearing up to boost renewables in its energy mix to 35% by 2030 and 50% by 2040, up from 22% currently.
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