Question & AnswerQ&A (EXECUTIVE ORDER NO. 290)
The primary objective of the NGVPPT is to enhance energy supply security in the transport sector through fuel diversification using indigenous natural gas, and to use compressed natural gas (CNG) as a clean alternative fuel for transport.
Executive Order No. 66, series of 2002, designates the Department of Energy as the lead agency for developing the Philippine natural gas industry and implementing the NGVPPT.
The NGVPPT covers the following key components: Gas Supply, Infrastructure Development, Market Development, Technology, Incentives and Financial Assistance, Manpower Development, Standards and Regulatory Concerns, and Information Education Communication (IEC).
Natural gas supply comes from indigenous gas resources such as the Malampaya gas from Palawan, as well as the importation of liquefied natural gas (LNG) from global gas producers to supplement indigenous supply.
There is a one percent (1%) rate of duty on imported NGVs, NGV engines, and other NGV industry-related equipment, facilities, parts, and components as certified by the DOE.
Co-implementing agencies include DENR, DOF (through BIR and BOC), DOST, DTI (through BPS and BOI), DOTC (through LTO and LTFRB), DILG, MMDA, Tariff Commission, TESDA, GFIs like DBP and Landbank, and PNOC.
The DENR through its Environmental Management Bureau (EMB) is tasked to fast track the issuance of Environmental Compliance Certificates (ECC) for NGV facilities and refueling stations and to formulate emission standards for CNG.
It is a system for CNG refueling where a high-pressure 'mother' station is built inside the Malampaya Onshore Gas Plant, and smaller 'daughter' stations are established at strategic locations without existing gas pipeline infrastructure.
The Department of Energy (DOE) provides technical and secretariat support to the NGVPPT Executive Forum.
The Executive Forum coordinates interagency activities, formulates programs and plans to pursue NGVPPT objectives, monitors implementation, recommends measures to enhance competitiveness, and meets regularly to discuss relevant issues.
Privileges include income tax holiday for pioneering projects, reduced import duties, issuance of certificates of compliance for emission standards, preferential franchise grants, accelerated issuance of ECCs, affordable financing packages, manpower development, attractive CNG pricing, and other incentives.
The pilot project aims to demonstrate and showcase the operation of natural gas buses for public transport to promote CNG as a clean alternative fuel, evaluate commercial viability, technical requirements, market demand, incentives impact, and public acceptance.