The Department of Energy (DoE) has formally assumed a central supervisory role over the country’s downstream natural gas industry, following the release of the Implementing Rules and Regulations (IRR) of RA 12120, or the Philippine Downstream Natural Gas Industry Development Act.

Outlined in Department Circular 2025-04-0005, the IRR designates the DoE as the primary agency responsible for overseeing and monitoring the Philippine Downstream Natural Gas Industry, as well as crafting strategies to implement key sector policies.

“The DoE shall be the lead agency to determine the need for and regulate the development of aggregation in the country,” the circular read.

“The DoE shall determine the requirements to be an aggregator and designate the aggregator/s and issue the applicable policies to implement aggregation, including the minimum percentage of indigenous natural gas for aggregation and pricing mechanisms for aggregated gas.”

Gas clearing house set

The DoE’s new mandate includes the establishment of a gas aggregation framework, which consolidates the natural gas demand of multiple consumers under a single purchasing entity.

The approach is expected to create a more efficient market, support pricing stability and encourage broader investment in the sector.

Under the framework, gas aggregation is defined as the procurement of indigenous natural gas blended with imported liquefied natural gas, which will be sold to buyers both domestically and internationally through recognized aggregators.

The IRR is also expected to drive the development of indigenous energy resources and reduce the country’s reliance on imported fuel, aligning with the government’s broader goal of achieving energy security.