What's New

Downstream Natural Gas

The birth of the Philippine natural gas industry brings the country closer to its goal of harnessing environment friendly fuels to ensure a stable, diverse and secure energy supply. However, the growth of this industry is anchored on the development of additional gas-generated capacity, other non-power applications and the necessary infrastructure that is to bring the natural gas to its potential markets. The infrastructure includes the appropriate pipeline transmission and distribution networks, LNG terminals and facilities, gas refilling stations for CNG-run vehicles and ancillary facilities.

In the absence of the law for the natural gas sector, the stage for the industry’s development has been set with the preparation of a gas policy framework, industry rules and regulations. A clear and concise policies, objectives, programs and strategies formulated by the DOE, together with the critical cooperation and participation of the private sector, development  of a natural gas industry is ensured.

While there is still much to be done, the DOE will be at the forefront of efforts to rally the participants in this new industry to success.


Documents to Accompany Application for Permit for the Modification of Natural Gas Transmission and/or Distribution-Related Facilities


All applications for Natural Gas Transmission- and/or Distribution-Related Facilities Permits shall be accompanied by such documents as are applicable and relevant, in the form of exhibits, including but not limited to the following:

a) Certificate of Registration with the Securities and Exchange Commission, if applicant is a corporation; or Certificate of Filing of Amended Articles of Incorporation and By-Laws, for existing corporations when applicable;

b) Company/Corporation profile and organizational structure (Philippines and abroad) indicating complete names and positions of personnel and their respective roles and assignment;

c) Complete name and complete address of company/corporation (abroad and/or in the Philippines);

d) A certified true copy of applicant’s articles of incorporation and by-laws, if the applicant is a corporation;

e) A list of the names and business addresses of applicant's officers and directors, or similar officials, if the applicant is not a corporation;

f) If the applicant or any of its officers or directors, directly or indirectly, owns, controls, or holds with power to vote, ten (10) percent or more of the outstanding voting shares of any Person or organized group of Persons engaged in production, Transmission, Distribution, LNG Terminal and Regasification facility or pricing of Natural Gas, or of any Person or organized group of Persons engaged in the construction or financing of such enterprises or operations, a detailed explanation of each of the above relationships, including the percentage of voting strength represented by such ownership of shares. If any Person or organized group of Persons, directly or indirectly, owns, controls or holds with power to vote, ten (10) percent or more of the outstanding voting securities of applicant a detailed explanation of each such relationship;

g) A certified true copy of the application for Environmental Compliance Certificate with the DENR including its Environmental Impact Statement;

h) A certified true copy of the applicant’s Contract for Supply of natural gas, CNG or LNG and/or any legal contract that binds supply agreement between supplier and buyer;

i) Hard Copy and Electronic Copy (for easy enlargement of details) of Original maps, plans, schematic diagrams, and flow diagrams of suitable, clear and readable scale and detail showing:

1) Location and area of the facility;

2) Location and size (rated horsepower) of compressor units/stations;

3) Location and designation of each point of connection of proposed facilities with Customers;

4) Determine whether the locations designated in 3) are to be served at wholesale or retail, (if applicable);

5) Geographical/vicinity/location map (indicate which way is North-South-West-East, barangay, town, city, province, road/highway location, neighbors, establishments, fields), area, perimeter;

6) Plans- floor plans, schematic, and flow diagrams of the facility, with complete labels, specifications, operating conditions and dimensions. Indicate location and arrangement of components- all equipment, machineries, storage tanks, jetty, pipelines, metering, tees, bends, connections, regulators, valves, fittings, pigging, materials used, natural gas/CNG/LNG, control, electrical, water, SCADA, safety/security systems;

7) Design and operating capacity of the facility;

8) Size, specifications, ratings/capacity, materials used, operating temperatures and pressures, type/brand/make (including where built, date built) of all equipments, machineries, storage tanks, jetty, pipelines, metering, valves, fittings, including insulations;

9) Maximum deliveries which applicant's proposed facility would be capable of achieving under most favorable operating conditions with utilization of all facilities with and without compression.

10) Detailed flow diagram of natural gas/CNG/LNG from supply source to outlet/output to customers; For LNG facility, indicate the liquid state and gaseous state of natural gas in the flow system diagram (color coded);

j) The proposed location of the facility

1) A map showing surface land-use and occupation;

2) A list of the names of the landowners; and

3) A copy of the proposed access agreement or easements to be entered into with landowners.

4) A certified true copy of lease/rent/access agreement including period of lease/rent and name of lessor

Provided that the submission of requirements 2 and 3 herein may be deferred to any time before the Permit is issued by the DOE.

k) A system-wide estimate/calculation of the quantity of natural gas/CNG/LNG delivery requirement versus demand from prospective customers;

l) A detailed estimate of total capital cost of the facility for which application is made, showing cost of construction by operating units and separately stating the compensation for right-of-way, landowner damages, surveys, materials, labor, engineering and inspection, administrative overhead, fees for legal and other services, allowance for funds used during construction and other contingencies. Include a brief statement indicating the source of information used as the basis for the above estimate. If not otherwise stated, submit data on preliminary bids, if any, for the proposed facilities and recent experience cost data for facilities of similar character;

m) Name of contractors, consultants, engineering specialists, suppliers, designers involved in the construction of the facility; Engineering, Procurement and Construction (EPC) Contract and/or Project Management (PM) Contract with reputable companies with the established track record in the natural gas facility design, engineering and construction;

n) Plans for financing the proposed facilities for which the application is filed, supported by documents describing:

1) The ratio of equity and debt to total financing;

i. for equity financing, names and addresses of stockholders, the respective equity contribution by value (paid-up and not paid-up) and type;

ii. For debt financing, type of debt instruments, their maturities, respective share to total debts, source of debt financing, i.e., whether domestic or foreign;

2) A statement of anticipated cash flow, including provision during the period of construction and the first three (3) full years of the facility’s capital requirements including interest and dividends;

3) A balance sheet and income statement for three (3) years from the most recent date available;

4) Certified true copies of all applications and supporting exhibits, registration statements or other similar submissions, if any, to the Securities and Exchange Commission, including all supplements, changes or modifications of the above;

5) Any additional data and information upon which the applicant proposes to rely in showing the adequacy and availability to it of resources for financing the Transmission- and/or Distribution-related facilities.

o) A concise statement setting forth arrangements for supervision, management, engineering, accounting, legal or other similar services that will not be performed by employees of the applicant, including references to any existing or contemplated agreement to be entered into in connection with the construction or operation of the facility together with a statement showing any affiliation between the applicant and any parties to such agreements or arrangements referred to in paragraph (f) above;

p) Names of all testing authorities and other inspection services and contractors to be employed in quality surveillance of materials and fabrication and shall confirm that such testing authorities and inspection services meet the requirements of the ISO or its equivalent

q) International Standards for: storage and handling of natural gas/CNG/LNG; fire safety & prevention; natural gas/CNG/LNG leak safety, prevention, containment; seismic design of facilities considering other calamities

r) Information on other international facility designed similarly as the proposed facility

s) Profile of carriers, trucks, trailers: owners of vessels/trucks/trailers, terms, number and capacity of vessels/trucks/trailers, type, specifications, manufacturers, where built, age/date built of vessels/trucks/trailers to be used, compliance with International Maritime Organization International Code for equipment of ships carrying CNG/LNG in bulk, contracts entered with owners of vessels/trucks/trailers

t) Pro-forma copies of contracts to be entered into with third parties/customers for the Facility, including any code of operations or transmission policy (applicable only to third party access).

u) A Certified True Copy of facility operator Certificate of Acceptance of all works done by contractors. Kindly indicate full name, position, and signature of authorized Facility representatives/personnel who will be signing the Certificate of Acceptance.

v) Certification from the President of Facility that the whole Facility, after complete construction/refurbishment by all contractors, is in acceptable industry standards, safe to operate and poses no risk to the operators, the general public, and the environment.

w) LOI/documents/contracts on market for natural gas/CNG/LNG (customers) who will be supplied from the facility



(As applicable)

1. Feasibility Study of the Project

2. Geologic survey and study of the area (land, soil, rock formations, above ground, underground, undersea, seafloor, under the seafloor, water) where the infrastructure for the project will be erected.

3. Atmospheric survey and study of the area (weather system, typhoon paths).

4. Zoning/Locational Clearance and/or Certificate of Approved Land Use Conversion if proposed site is not within an industrial or commercial zone

5. Barangay Business Clearance

6. Mayor’s Business Permit

7. Building Permit

8. Mechanical Permit

9. Sanitary / Plumbing Permit

10. Electrical Permit

11. Fire Safety Inspection Certificate from the Bureau of Fire Protection (BFP)

12. National Water Regulatory Board Permit, if applicable

13. System Handover Manual

14. Health, Safety, Security, Environment (HSSE) Plan

15. Emergency Response Procedure/ Safety and Emergency Manual

16. Operation and Maintenance Manual

17. Fire and Gas Electrical Checklist Manual

18. Certification of Personnel Training Conducted including results of competency assessment.

19. Certificate of Calibration of All Metered Units

20. Certificate of Final Electrical Inspection

21. Certificate of Occupancy

22. Insurance coverage of the project (certified true copy). It should comply with and satisfy the Health, Safety, Security and Environment (HSSE) Plan. The immediate locality and its people near the facility should be covered and protected by the insurance.