RA12120: AN ACT PROMOTING THE DEVELOPMENT OF THE PHILIPPINE NATURAL GAS INDUSTRY, CONSOLIDATING FOR THE PURPOSE ALL LAWS RELATING TO THE TRANSMISSION, DISTRIBUTION, AND SUPPLY OF NATURAL GAS, AND APPROPRIATING FUNDS THEREFOR
Republic Act No. 12120, also known as the "Philippine Natural Gas Industry Development Act," aims to promote natural gas as a crucial, cost-effective, and safe energy source, contributing significantly to the nation's energy security. By establishing the Philippine Downstream Natural Gas Industry (PDNGI), the law seeks to ensure a reliable fuel supply for power plants, addressing various energy demands while facilitating a gradual transition to renewable energy. A key policy is to develop the Philippines into a Liquefied Natural Gas (LNG) trading and transshipment hub in the Asia-Pacific region, ensuring transparent, competitive, and environmentally responsible operations. The Act also prioritizes the exploration and development of indigenous natural gas resources to enhance energy security and attract investors by fostering a competitive and fair industry environment.
The law's significance for the Filipino people lies in its potential to provide a stable and affordable energy supply, which can lead to lower energy prices and improved quality of life. By promoting natural gas as a transition fuel and developing local expertise, the Act supports job creation and economic growth. It also emphasizes consumer welfare by ensuring transparent pricing and promoting competition within the industry. Furthermore, the focus on environmental responsibility and the eventual transition to renewable energy sources align with sustainable development goals, promising a cleaner and more secure energy future for the Philippines.