DOE as Lead Agency for Natural Gas Industry

The Order anchors the lead-role designation on Section 2 of Republic Act No. 7638 (Department of Energy Act of 1992), which declares State policy to ensure a continuous, adequate, and economic energy supply while achieving self-reliance through integrated and intensive exploration, production, management, and development of indigenous energy resources without sacrificing ecological concerns.
The Order recognizes that Section 4 of R.A. No. 7638 requires the Department of Energy (DOE) to formulate policies for planning and implementation of a comprehensive program for efficient energy supply and economical use consistent with the approved national economic plan.
The Order recognizes that Section 5(b) of R.A. No. 7638 directs the DOE to provide a mechanism for integration, rationalization, and coordination of government energy programs with a preferential bias for environment-friendly, indigenous, and low-cost sources of energy.
The Order recognizes that Section 5(c) of R.A. No. 7638 mandates the DOE to establish and administer programs for exploration, transportation, marketing, distribution, utilization, conservation, stockpiling, and storage of energy resources of all forms.
The Order recognizes that Section 5(e) of R.A. No. 7638 authorizes the DOE to regulate private sector activities relative to energy projects while providing for an environment conducive to free and active private sector participation and investment.

The Order directs the creation of a unified and coordinated government effort to establish a successful and robust Natural Gas Industry.
The Order treats natural gas as an environment-friendly, indigenous, and low-cost source of energy among indigenous energy resources.
The Order frames the Malampaya Gas-to-Power Project as the beginning of the Natural Gas Industry in the Philippines and as a key national investment that requires coordinated government support.
The Order emphasizes that developing the Natural Gas Industry requires the involvement and support of multiple government agencies to achieve unity of effort.

Section 1 designates the Department of Energy as the lead government agency in ensuring a unified and coordinated effort toward establishing a successful and robust Natural Gas Industry.
The DOE’s leadership role covers the overall coordination function needed for natural gas industry development.
The designation operates as a government-wide organizing mechanism for the natural gas industry development effort.

Section 2 requires the Department of Energy to recommend appropriate policy statements, industry rules and guidelines, and other issuances to facilitate and encourage private sector investments and participation in the natural gas industry.
The DOE’s recommendations are intended to provide a workable regulatory and policy environment that promotes investment and participation.
The DOE’s authority under this Order is directed specifically to natural gas industry facilitation and encouragement of private sector involvement.

Section 3 empowers the DOE to call upon any department, agency, or instrumentality of the Government for assistance to ensure natural gas industry development.
Section 3 authorizes the DOE to retain the services of technical consultants with proven and internationally recognized expertise in natural gas technology as deemed necessary.
Section 3 limits consultant retention to activities subject to the existing rules and regulations on consultancy contracts.

Section 4 requires all government agencies to assist and cooperate with the DOE as may be necessary to develop and implement programs for the natural gas industry.
Cooperation is required to support the DOE in program development and implementation for the natural gas industry.

Section 5 provides that funding requirements for carrying out the tasks under the Order shall be charged against savings from the appropriations of the DOE for the first year of implementation.
Section 5 provides that funding requirements for succeeding years shall be charged against the regular appropriations of the DOE.