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# DC2024-01-0007 — Amended Philippine Downstream Natural Gas Regulation

**Department Circular No. DC2024-01-0007**
"Adopting the Amended Rules and Regulations Governing the Philippine Downstream Natural Gas Industry"
Issued: January 17, 2024 | Secretary: Raphael P.M. Lotilla
Effective: ~February 1, 2024 (15 days after publication)
Source: raw/_ocr/regulations/dc2024-01-0007-p001-p020.txt, p021-p040.txt, p041-p064.txt
Main text: 23 pages (§§1–38); Annexes A–C: pages 24–64

Legal basis: RA 7638 (DOE Act of 1992); EO 66 (DOE as DNG lead agency); AO 38.
Repeals: DC2017-11-0012 (original PDNGR).
Superseded by: DC2025-04-0005 (IRR of RA 12120, March 26, 2025).

---

## RULE I — PRELIMINARY PROVISIONS

### Section 1. Short Title.

This Circular shall be known as the "Amended Philippine Downstream Natural Gas Regulation."

### Section 2. Scope.

This Circular prescribes guidelines on:

(a) Requirements for Permits to Operators for siting, construction, operation and maintenance, modification, expansion, rehabilitation, decommissioning and abandonment of DNG Facilities;

(b) Requirements for Accreditations to Participants in the trade of Natural Gas through DNG Facilities;

(c) Industry-specific standards and best practices for safe and responsible operation of the DNG Industry;

(d) Responsibilities of DOE, Operators of DNG Facilities, and Participants;

(e) Reportorial requirements of Operators and Participants; and

(f) Implementation of plans and programs for the promotion and development of the DNG Industry in support of the PEP.

### Section 3. Declaration of Policies.

It is hereby declared the policy of the State to:

(a) Provide a conducive environment for the promotion and development of the DNG Industry through issuance of policies, plans, and programs therefor;

(b) Promote development and operation of gas-fired power plants **notwithstanding the depletion of the Malampaya Natural Gas Supply**;

(c) Promote Natural Gas as a sustainable, accessible, and flexible fuel contributing to PEP goals;

(d) Ensure compliance with DNG Industry standards and best practices on HSSE and other applicable laws;

(e) Promote financial viability of the DNG Industry by liberalizing entry of investors and encouraging access to capital and off-taker market under transparency, competition, and fair trade;

(f) Support exploration and development of Indigenous Natural Gas resources; prioritize use of Indigenous Natural Gas for greater energy security;

(g) Ensure transparent pricing of Natural Gas and rates for importation, storage, regasification, transmission, and distribution in a regime of open and fair competition;

(h) Encourage development of necessary technical expertise in government and private sector; and

(i) Facilitate development of power and non-power end-uses of Natural Gas (commercial, industrial, residential, transport), with power rates subject to RA 9136 (EPIRA).

### Section 4. Definition of Terms.

Key definitions (notable differences from IRR terminology noted):

| Term | Definition |
|------|-----------|
| Accreditation | Authorization granted by DOE to a natural or juridical person as a **Participant** (note: DC2024 uses "Participant"; the IRR uses same term but structure differs) |
| Acknowledgment | Authorization granted by DOE to a Participant for importation/exportation notification |
| Affiliate | Corporation that directly or indirectly controls, is controlled by, or is under common control of another corporation |
| Aggregation | Activity of a natural or juridical person procuring LNG volumes and Indigenous Natural Gas through supply and/or financial trade contracts, and selling the blended and consolidated gas to gas buyers in the Philippines or abroad (note: less formal than IRR's aggregation framework; no minimum indigenous percentage mechanism) |
| Aggregator | Natural or juridical person accredited by DOE to engage in Aggregation |
| Anti-Competitive Behavior | Violations of RA 10667 (Philippine Competition Act) |
| Bunkering | Business of selling LNG as fuel for domestic or foreign marine vessels |
| Bunker Trader | Natural or juridical person accredited by DOE to engage in Bunkering |
| Conventional Transportation System | Network of fixed facilities (wellheads, compressor stations, pipelines, metering) for Natural Gas delivery — includes Transmission and Distribution Systems |
| Decommissioning and Abandonment | Removal or condemnation of entire or component of DNG Facility at end of productive life; includes site restoration |
| Delivery | Transmission or distribution of Natural Gas and supply at wholesale or retail |
| Distribution | Transportation of Natural Gas through a Distribution System |
| Distribution System | System of conventional pipelines from receipt from Transmission System to End-User receiving facility |
| DNG Facility | Facilities covered by §9 of this Circular including pipelines and related facilities used to transport Natural Gas after point of sale up to End-Users |
| DNG Industry | Operators of DNG Facilities, Participants of Natural Gas trade, and their Affiliates |
| End-User | Natural or juridical person who acquires and receives Delivery of Natural Gas for final use |
| Expansion | Activity resulting in increase of design Capacity of DNG Facility |
| Financial Closing | Stage where legally binding financial commitment exists to fund a project |
| Force Majeure | Acts of God, strikes, enemy acts, fire/explosion, epidemic, court orders, or similar events |
| Government Agency | Any government or governmental body, department, commission, authority, tribunal, agency, or entity, and any bureau of the Philippines |
| Importation | Acquisition and bringing of LNG into the Philippines for domestic use or export |
| **Importer** | Natural or juridical person accredited by DOE to engage in the business of Importation (note: **distinct participant type** not present in RA 12120 / IRR) |
| Indigenous Natural Gas | Natural Gas produced from fields within the territorial jurisdiction of the Philippines |
| LNG | Liquefied Natural Gas — Natural Gas liquefied by cooling at cryogenic temperature |
| LNG Storage and Regasification Terminal | All component facilities to receive, unload, load, store, and regasify LNG (jetty, unloading arms, cryogenic and non-cryogenic pipelines, storage tanks, pumps, boil-off gas compressors, condensers, vaporizers, control facilities, metering, send-out, other components) |
| Modification | Major change or alteration to design or component of DNG Facility |
| Natural Gas | Gaseous mixture of hydrocarbons — primarily methane, but generally including ethane, propane, higher hydrocarbons, and some non-combustible gases such as nitrogen and CO2 |
| NGSPA | Natural Gas Sales and Purchase Agreement — contract for delivery and sale of Indigenous Natural Gas or imported LNG |
| **Operator** | Natural or juridical person who **owns or is authorized to operate** the DNG Facility and is issued a DOE Permit (note: IRR uses "Permit Holder" instead) |
| Own-Use Operator | Operator engaged in exclusive use of DNG Facilities by itself and/or Affiliates |
| Participant | Natural or juridical person authorized and issued an Accreditation to engage in natural gas trade as **Supplier (incl. Importer and Bunker Trader), Aggregator, or Reseller** |
| Permit | Authorization granted by DOE to an Operator for siting, construction, operation, and maintenance of DNG Facilities |
| Rehabilitation | Major restoration to DNG Facility or any damaged component thereof |
| Reseller | Natural or juridical person accredited by DOE to engage in Reselling |
| Reselling | Business of acquiring Natural Gas through DNG Facility from a Supplier or Aggregator and reselling to End-User |
| Supplier | Natural or juridical person accredited by DOE to engage in Supply |
| Supply | Business of acquiring or producing Natural Gas from indigenous or imported source and selling to gas buyers in the Philippines or abroad |
| TPA (Third-Party Access) | Business of allowing access by a third-party End-User or non-Affiliate to the entire Capacity of any DNG Facility |
| Transmission | Transport of Natural Gas through a Transmission System |
| Transmission System | System of conventional pipelines from indigenous supply and/or LNG Storage and Regasification Terminal to Distribution System |
| Virtual Transport System | Alternative modes of Natural Gas Delivery other than Conventional Transport System — use of land vehicles or sea vessels, with or without on-site modular regasification unit |

---

## RULE II — DOE RESPONSIBILITIES

### Section 5. Responsibilities.

DOE has overall responsibility for supervising and monitoring the DNG Industry:

(a) Establish standards on gas quality, facility construction and equipment installation, safety and security of operation, and environmental protection, in coordination with relevant government agencies. Technical Committee (TC) created via MoA dated May 14, 2021 to develop applicable Philippine National Standards on the DNG Industry; TC composed of representatives from academe, trade/industry, consumer, professional associations, research institutions, government agencies, and testing institutions;

(b) Enforce DNG Industry compliance with standards through technical regulations, reports review, and onsite inspection. Inter-Agency HSSE Inspection and Monitoring Team (IA-HSSE IMT), created via MoU dated November 24, 2015, shall conduct onsite inspections; IA-HSSE IMT composed of: DOE, MARINA, PCG, DENR, DOLE, BFP, and DOH;

(c) Issue:
1. Permits to Operators for siting, construction, operation and maintenance, modification, expansion, rehabilitation, decommissioning and abandonment;
2. Accreditations to Participants in natural gas trade;
3. Acknowledgment of LNG importation and exportation notification; and
4. Other endorsements or issuances in furtherance of DNG Industry development.

DOE through EVOSS Steering Committee shall integrate the procedure for processing and issuance of Permits, Accreditations, and Acknowledgments pursuant to RA 11234 (EVOSS Act);

(d) Review, suspend, or revoke Permits and Accreditations for non-compliance;

(e) Issue written approval for assignment or transfer of Permit after finding that assignee meets legal, technical, and financial qualifications and assumes all existing obligations;

(f) Endorse to PCC any reported or observed Anti-Competitive Behavior;

(g) Coordinate with relevant government agencies to catalyze DNG Industry development;

(h) Require regular and special reports from Operators and Participants;

(i) Publish list of Operators and Participants with Permit and Accreditation status on DOE website;

(j) Create the Downstream Natural Gas Review and Evaluation Committee (DNG-REC) to evaluate and recommend approval of applications, policies, and programs for DNG Industry development (note: creation authorized here under Rule II; formal constitution in Annex A); and

(k) Implement all other necessary measures and programs pursuant to existing laws.

---

## RULE III — DNG INDUSTRY STRUCTURE AND RESPONSIBILITIES

### Section 6. Structure.

The DNG Industry consists of:

(a) Participants in natural gas trade:
1. Supplier (including Importer and Bunker Trader)
2. Aggregator
3. Reseller
4. Other persons engaged in the trade of Natural Gas

(b) DNG Facility Operators of:
1. LNG Storage and Regasification Terminals
2. Transmission System
3. Distribution System
4. Virtual Transport System
5. Other related facilities

### Section 7. Natural Gas Supply.

Procurement, delivery, and pricing of Natural Gas from importation or indigenous production shall be transparent, competitive, and secure. DNG Facilities may be designed for Indigenous Natural Gas, imported LNG, or a combination of both. DOE may prescribe measures to support optimal supply of Natural Gas especially from indigenous sources, including priority dispatch and/or sourcing of Indigenous Natural Gas. DOE may mandate the blending or aggregation of imported LNG and Indigenous Natural Gas and/or enforce the priority sourcing of Indigenous Natural Gas for power generation.

### Section 8. Responsibilities of Participants.

(a) Align goals and objectives with declared policies;
(b) Secure Accreditation before engaging in natural gas trade per Guidelines for Issuance of Participant's Accreditation;
(c) Comply with applicable laws on tax, labor, health, safety, indigenous people's rights, environment, and specially protected areas;
(d) Comply with Natural Gas quality standards under §§5(a)–(b);
(e) Comply with accurate and timely submission of reports;
(f) Allow DOE, IA-HSSE IMT, PCC, and other agencies entry for inspection and monitoring;
(g) Allow BIR and BOC entry for tax and fiscal purposes;
(h) Give preference to qualified local talent and local companies/agencies in hiring and contracting;
(i) Hold DOE, IA-HSSE IMT, officers, agents, and employees free and harmless from suits arising from their lawful implementation acts; and
(j) Comply with policies and responsibilities in this Circular and relevant DOE orders.

### Section 9. Downstream Natural Gas Facilities.

**9.1. LNG Storage and Regasification Terminal.** May include commingling system for blending LNG and Indigenous Natural Gas. Components: jetty and unloading/loading arms; cryogenic and non-cryogenic pipelines; storage tanks; low and high pressure pumps; boil-off gas (BOG) compressors and condensers; vaporizers; send-out system; metering; commingling system; and other related facilities.

**9.2. Delivery Systems.** Different DNG Facilities used to deliver Natural Gas from LNG Storage and Regasification Terminal and/or indigenous source to End-Users: (a) Transmission System; (b) Distribution System; (c) Virtual Transport System; and (d) Other related facilities.

### Section 10. Responsibilities of Operators.

(a) Align goals with declared policies;
(b) Secure Permit before engaging in any DNG Facility activity per Guidelines for Issuance of Operator's Permit;
(c) Bear direct responsibility and accountability for construction, operation, and maintenance;
(d) Comply with applicable Philippine laws on tax, labor, health, safety, indigenous people's rights, environment, and specially protected areas;
(e) Comply with standards on gas quality, facility construction and equipment, safety, security, and environmental protection;
(f) Operate DNG Facility strictly adhering to Permit scope and HSSE best practices;
(g) Timely submit accurate and complete reports per Guidelines for Submission of Reportorial Requirements;
(h) Allow DOE, IA-HSSE IMT, PCC, and other agencies entry for inspection and monitoring;
(i) Allow BIR and BOC entry for tax and fiscal purposes;
(j) Give preference to qualified local talent and local companies/agencies;
(k) Hold DOE, IA-HSSE IMT, officers, agents, and employees free and harmless from suits arising from lawful implementation acts;
(l) Participate in regular operational meetings with DNG-REC and in development, issuance, and review of plans, protocols, standards, and codes; and
(m) Comply with policies, requirements, and responsibilities in this Circular and relevant DOE orders.

---

## RULE IV — REGULATION OF DOWNSTREAM NATURAL GAS INDUSTRY

### Section 11. Permits for Operators of DNG Facility.

**11.1. Requirements.** No natural or juridical person shall construct, expand, rehabilitate, modify, operate, or maintain a DNG Facility unless authorized with a Permit per Guidelines for Issuance of Operator's Permit. Permits on per-type-of-DNG-Facility basis.

**11.2. Approval of Permit.** Permit types:
(a) Notice to Proceed (NTP)
(b) Permit to Construct (PTC)
(c) Permit to Operate and Maintain (POM)
(d) Permit to Expand (PTE)
(e) Permit to Rehabilitate (PTR)
(f) Permit to Modify (PTM)
(g) Approval of Permit Extension
(h) Permit for Decommissioning and Abandonment
(i) Approval of Assignment or Transfer of Operatorship
(j) Any other Permit as may be necessary

**11.3. Guiding Principles.** DNG-REC recommends Permit issuance for DNG-REC Chair approval (all except PTC and POM); DOE Secretary approval required for PTC and POM. Criteria: consistent with declared policies; complete legal, technical, and financial requirements; technically and financially viable.

**11.4. Reportorial Requirements.** Operator complies with Guidelines for Submission of Reportorial Requirements.

**11.5. Validity and Extension:**

| Permit | Validity |
|--------|---------|
| NTP | 1 year |
| POM | Maximum 25 years; renewable for another 25 years |
| Other Permits | Per Operator proposal, subject to DOE verification |

Extension grounds: (1) Force Majeure (notification within 30 days); (2) non-issuance of government permit without Operator's fault; (3) other justifiable reasons beyond Operator's control. Operator notifies DNG-REC in writing with proof and proposed amended work program.

POM renewal conditions: Operator continues to be legally, technically, and financially competent; DNG Facilities in good working condition; renewal application submitted at least 6 months before POM expiration.

**11.6. Modification of Permit Conditions.** DNG-REC may recommend modification for approval by DOE Secretary or DNG-REC Chair.

### Section 12. Accreditation of Participants.

**12.1. Requirements.** No natural or juridical person shall conduct natural gas trade through a DNG Facility unless authorized with DOE Accreditation per Guidelines for Issuance of Participant's Accreditation. Applicant may apply as: (a) Supplier (including Importer and Bunker Trader); (b) Aggregator; or (c) Reseller.

**12.2. Approval.** All Accreditation types approved by **OIMB Director** (not DNG-REC; different from IRR). Per-type basis.

**12.3. Guiding Principles.** NGMD recommends Accreditations for OIMB Director approval. Criteria: consistent with policies; complete legal, technical, and financial requirements; viable trade with available market, compliant with standards, and supported by clear funding.

**12.4. Reportorial Requirements.** Participant complies with Guidelines for Issuance of Participant's Accreditation and Guidelines for Submission of Reportorial Requirements.

**12.5. Validity of Accreditation. All Accreditations valid for 15 years; renewable (maximum 15 years per renewal).** (Note: IRR changed this to 5 years renewable every 5 years.)

**12.6. Modification of Conditions.** NGMD may recommend modification for OIMB Director approval.

### Section 13. Application Fee.

Non-refundable fee per latest DOE Approved Schedule of Fees and Charges (Annex A-1).

---

## RULE V — OPERATION OF DOWNSTREAM NATURAL GAS FACILITY

### Section 14. Own-Use.

The Own-Use Operator shall utilize its entire Capacity exclusively for own-use and shall not be allowed to enter into TPA arrangements. (Note: stricter than IRR, which allows DOE to authorize exceptions.)

### Section 15. Third-Party Access.

The entire Capacity of a DNG Facility may, at the Operator's discretion, be offered for TPA. TPA Operator shall utilize entire Capacity exclusively for TPA and shall not use any Capacity for Own-Use.

**15.1. Classifications of TPA:**

**1. Negotiated TPA.** Commercial arrangement where Operator and third-party End-User or non-Affiliate agree on negotiated terms and conditions for use of entire or portion of DNG Facility Capacity. Conditions: (a) terms shall not constitute Anti-Competitive Behavior; (b) Operator complies with §10 responsibilities.

**2. Competitive TPA.** Operator publicly offers entire or portion of its Capacity to third-party End-Users or non-Affiliates. Conditions: (a) Operator notifies DOE of terms of reference; (b) business open and public, offer transparent, accessible, and non-discriminatory; (c) terms shall not constitute Anti-Competitive Behavior; (d) Operator complies with §10 responsibilities.

*(Note: No "Regulated TPA" type — this was introduced in DC2025-04-0005.)*

**15.2. Other TPA Conditions:** TPA shall encourage diverse and sustainable market beyond power sector; anchored on safe, secure, reliable, efficient operation. If TPA Operator opts for own-use, must comply with §14; if Own-Use Operator opts for TPA, must comply with §15.

### Section 16. DNG Transmission and Distribution Systems as Public Utilities.

DNG Transmission and Distribution Systems **operating as public utilities** shall be subject to the Public Service Act (CA 146 as amended by RA 11659) and other applicable laws in addition to this Circular.

### Section 17. LNG Storage and Regasification Terminals.

The operation of an LNG Storage and Regasification Terminal shall **not** be considered a public utility.

### Section 18. Cross-Ownership.

Entity may hold interest in ownership and operation of DNG Facilities and importation and supply of Natural Gas to End-Users (including by Aggregators). Cross-ownership allowed for operational and financial feasibility, subject to full adherence to PCC rules and applicable laws.

### Section 19. Fair Access to Capital and Off-Taker Market.

DOE shall issue applicable policies for promotion of DNG Industry financial viability and fair access to the off-taker market (power, industrial, commercial, transport, residential sectors). DOE to provide stakeholders with updates on plans, programs, and technological developments.

---

## RULE VI — DNG INDUSTRY COMPLIANCE WITH STANDARDS

### Section 20. Compliance Requirement.

DNG Facilities shall be constructed, operated, and maintained with high quality and efficient service, stringent safety systems, and best operational practices, consistent with applicable Philippine and Internationally Accepted Standards.

### Section 21. Critical Safety Conditions of LNG Ships.

LNG vessel operators must certify compliance with international standards on fitness to travel, hull requirements, cargo containment, pressure/temperature controls, safety systems, fire protection, and crew training. Marine quality assurance through vetting process. LNG ship unloading equipped with redundant emergency shutdown, quick release, containment, and rescue systems. Ships must have comprehensive security plans.

### Section 22. Critical Safety Conditions of the Facility.

Multiple layers of protection required:

(a) **Primary Containment** — suitable materials and engineering design to contain LNG;

(b) **Secondary Containment** — dikes, berms, or reinforced concrete tank around inner tank; secondary containment systems designed to exceed tank volume; double and full containment systems may eliminate need for dikes;

(c) **Safeguard Systems** — gas, liquid, and fire detection; remote and automatic shutoff systems; operational systems (procedures, training, emergency response);

(d) **Separation Distance** — LNG facilities sited at safe distance from adjacent industrial, community, and public areas; safety zones established for LNG ships in Philippine waters; safe distances based on LNG vapor dispersion data and thermal radiation contours;

(e) **Industry Standards/Regulatory Compliance** — operating and maintenance procedures; personnel training; guidance from SIGTTO, GPA, and NFPA;

(f) **Safety Standard** — compliance with Philippine and Internationally Accepted Safety Standards on design and construction, management system, operation system, maintenance system, personnel development, community health and safety, and emergency response; and

(g) **Accident, Damage and Discontinuation of Operations** — Operator must inform DOE Secretary, DNG-REC Chair, and OIMB Director and submit preliminary report within 48 hours; comprehensive report to DOE Secretary, DNG-REC Chair, OIMB Director, and IA-HSSE-IMT within 7 days; affected segment taken out of operation if danger to life or property.

### Section 23. Critical Safety Conditions of Transmission and Distribution Systems.

(a) **Impact on Public Infrastructure** — technical and regulatory compatibility with public infrastructure (bridges, roads, harbors, streams, rivers, coastal waterways); proper consultation and coordination with Government Agencies;

(b) **Pipeline Testing** — no pipeline testing without presence of and coordination with DNG-REC and IA-HSSE-IMT; all hydrostatic test certificates and ultrasonic testing results readily available to DOE inspector at all times; not to be destroyed without DOE written permission;

(c) **Signage** — signs and markers in strategic locations; Operator must advise concerned LGUs and Government Agencies of pipeline existence and provide detailed maps of pipeline routes.

### Section 24. Critical Safety Conditions for Natural Gas.

Operator shall maintain gas quality per Philippine or Internationally Accepted Standards. Delivery of Indigenous or imported LNG shall pass purification requirements.

**24.1. Measurement of Natural Gas.**

- Volume: measured in standard cubic meters (SCM) per ISO standards
- Energy value: measured in Joules (J), with prefix as appropriate (MJ, TJ, PJ)
- Mass: measured in Kilograms (Kg)

**24.2. Standard Condition.** Temperature: 15.5°C (288.15 K); Absolute pressure: 1 atmosphere / 0.101325 MPa / 1013.25 millibars.

### Section 25. Critical Safety Conditions for Safety Practice.

Operator shall submit HSSE Management Systems covering:

(a) Environmental Risk Assessment and Management Plan;
(b) Occupational Health and Safety Risk Assessment and Management Plan;
(c) Facility Security Risk Assessment and Management Plan; and
(d) Disaster/Emergency Preparedness and Response Plan.

---

## RULE VII — DOWNSTREAM NATURAL GAS REVIEW AND EVALUATION COMMITTEE

### Section 26. Creation and Functions of the DNG-REC.

This Circular authorizes the creation of the DNG-REC, which shall:

(a) Receive, evaluate, and recommend to DOE Secretary or DNG-REC Chair the approval of DNG Industry Permits, endorsements, and other issuances;

(b) Recommend to DOE Secretary policies and programs for DNG Industry promotion and development;

(c) Recommend to DOE Secretary standards and codes for product, facility, and safety practices;

(d) Supervise and monitor progress of DNG Facility activities based on approved work program; impose penalties for non-compliance;

(e) Address clarifications raised by DOE Secretary; and

(f) Implement all other necessary measures.

DNG-REC Composition (per Annex A):
| Role | Position |
|------|---------|
| Chair | Supervising Undersecretary, OIMB (or as designated by DOE Secretary) |
| Vice Chair | Supervising Assistant Secretary, OIMB (or as designated) |
| Members | Director, OIMB; Director, Legal Services (LS); Director, Financial Services (FS) |

DNG-REC Secretariat: Head = Assistant Director, OIMB; Members = Head, NGMD/OIMB; Head, Downstream Conventional Energy Legal Services Division/LS; Head, Conventional Energy Resources Division/FS

---

## RULE VIII — TRANSITORY PROVISIONS

### Section 27. Existing Permits and Accreditations.

Current Operators and Participants continue under existing Permits or Accreditations. They shall comply with any additional requirements within **six (6) months** from the effectivity of this Circular. (Note: IRR extended this to 2 years.)

Participants with existing NGSPAs and prior deliveries of Natural Gas shall continue operating under existing contracts subject to compliance with additional requirements.

### Section 28. Pending Applications.

This Circular applies to all applications pending as of its effectivity.

---

## RULE IX — FINAL PROVISIONS

### Section 29. Confidential Information.

DOE shall not release any confidential information obtained under this Circular without Operator or Participant consent, or unless allowed by law or court order.

### Section 30. Insurance Policy.

Operator shall secure insurance policy provided to DOE within 60 days from date of issuance of PTC, PTE, PTR, PTM, or POM to cover potential damage to environment, lives, and/or property, in accordance with existing laws based on environmental and hazard impact assessments.

### Section 31. Decommissioning and Abandonment.

No DNG Facility shall be abandoned or decommissioned without prior DOE written authorization and DOE-approved abandonment and decommissioning plan based on Philippine or Internationally Accepted Standards, without prejudice to DENR rules and regulations.

### Section 32. Assignment or Transfer of Operatorship.

Assignment or change of Operatorship allowed only upon prior written approval of DOE Secretary, subject to full assumption of all obligations by the assignee and compliance with legal, technical, and financial qualifications per Guidelines for Issuance of Operator's Permit.

### Section 33. Incentives.

DNG Industry projects subject to Title XIII (Tax Incentives) of RA 8424 (National Internal Revenue Code of 1997), as amended.

### Section 34. Violations and Penalties.

Violation committed for non-compliance with:
(a) Any section or rule of this Circular;
(b) Any condition of a Permit, Accreditation, or other DOE approval; or
(c) Any relevant DOE order.

Penalties imposed in accordance with existing laws. Each day of non-compliance = separate violation. DOE may suspend or cancel Permits, Accreditations, or any other approvals, including recommendations to cancel permits from other agencies.

### Section 35. Enforcement.

DOE investigates motu proprio or upon receipt of written complaint under oath. DC2002-07-004 (Rules of Practice and Procedure before the DOE) shall be observed.

### Section 36. Repealing Clause.

**Department Circular No. 2017-11-0012** (Rules and Regulations Governing the Philippine Downstream Natural Gas Industry) and all other rules inconsistent with this Circular are hereby repealed or modified accordingly.

### Section 37. Separability Clause.

Invalid or unconstitutional provisions shall not affect remaining provisions.

### Section 38. Effectivity.

This Circular takes effect 15 days after publication in at least two (2) newspapers of general circulation. Copy filed with UP Law Center — Office of the National Administrative Register.

*Issued: January 17, 2024 at the DOE, Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Metro Manila.*
*Signed: Raphael P.M. Lotilla, Secretary*

---

## ANNEX A — GUIDELINES FOR ISSUANCE OF OPERATOR'S PERMIT

*19 pages (PDF pp. 24–42). Full documentary requirements for NTP, PTC, POM, PTE, PTR, PTM, and Decommissioning permits.*

**Permit Processing Timelines (DC2024-01-0007):**

| Stage | Processing Time |
|-------|----------------|
| DNG-REC Secretariat: completeness evaluation | 15 calendar days from receipt |
| DNG-REC: legal/technical/financial evaluation (NTP, PTE/PTR/PTM/Decommissioning) | 45 calendar days from complete submission |
| DNG-REC Chair approval/disapproval | 15 calendar days from DNG-REC recommendation |
| DNG-REC: evaluation for PTC | 45 calendar days from complete submission |
| DOE Secretary approval/disapproval (PTC and POM) | 15 calendar days from DNG-REC recommendation |
| DNG-REC: onsite verification + evaluation for POM | 15 calendar days (onsite) + 30 calendar days (evaluation) |

*(Note: DC2025-04-0005 (IRR) streamlined these timelines significantly: 3 wd completeness check, 12 wd evaluation, 5 wd decision.)*

**Permit sequence:** NTP (1yr) → PTC (per baseline schedule; submitted before NTP expiration) → POM (25 years; submitted within 30 working days of mechanical completion; renewable 25 years with application 6 months before expiration)

**Evaluation criteria:** First-come, first-served basis among complete applications; consistent with declared policies; Applicant meets financial, technical, and legal qualifications; sufficient natural gas supply; no Anti-Competitive Behavior.

**Annex A-1 (Schedule of Fees, CY2023):** NTP/PTC/PCERM/POM: ₱150,000 each; LNG Importer Accreditation and/or Supply and Transport: ₱14,000; Acknowledgement to Import (ATI-LNG): ₱1,500; Acknowledgement to Supply and Transport Natural Gas (AST-NG): ₱1,500

## ANNEX B — GUIDELINES FOR ISSUANCE OF PARTICIPANT'S ACCREDITATION

*Pages 45–64. Application requirements for Supplier (including Importer and Bunker Trader), Aggregator, and Reseller accreditations. Applications submitted to DOE-OIMB.*