DOE mandates local natural gas priority over imported LNG

The Department of Energy (DOE) has issued new rules mandating power plants and natural gas users in the Philippines to prioritize the use of locally produced natural gas over imported liquefied natural gas (LNG).

Department Circular No. DC2025-09-0013, signed by Energy Secretary Sharon Garin, establishes the framework for sourcing, pricing, and aggregating indigenous natural gas as mandated by the Philippine Natural Gas Industry Development Act (RA No. 12120).

The circular stipulates that local gas must be utilized first, with importation only permitted if local prices surpass imported LNG costs, including taxes and regasification, for three consecutive months.

This temporary importation period cannot exceed three months and must be implemented without violating existing contractual obligations.

The DOE's directive aims to bolster energy security and self-reliance by reducing dependence on volatile international markets, cutting transport costs, and encouraging domestic exploration.

The prioritization of local gas is being implemented in accordance with the law and the DOE's guiding principles, ensuring that existing contracts remain unaffected.