Section 23Sec./Art. 23

Natural Gas Supply. - The procurement, delivery and pricing of natural gas from indigenous production facilities or from importation to the PDNGI shall be transparent and secure. If necessary, the DOE, ERC, and PCC shall require the suppliers to submit relevant information pertaining to supply contracting, procurement, pricing, and distribution scheme to users for monitoring purposes.

Procurement and utilization of indigenous natural gas, including without limitation, by gas-fired power plants, shall be prioritized over imported natural gas: Provided, That it is consistent with the State's policy of ensuring energy security and consumer welfare. An indigenous natural gas supplier and aggregator shall provide fair and open access to its natural gas supply in non-discriminatory and transparent manner through physical supply, administrative or financial contracts, or any other arrangements allowed by the DOE.

Power produced from indigenous natural gas shall have priority over other conventional energy sources. Such prioritization shall cover indigenous natural gas power supply contracting, including mechanisms for minimum supply requirements.

The DOE shall establish mechanisms for the optimal and full utilization of indigenous natural gas in the generation, transmission, distribution, and supply of power, subject to standards and limitations consistent with the state's policy of ensuring energy security and consumer welfare. Pursuant thereto, the DOE shall formulate mechanisms that shall prescribe a mandated minimum percentage of the electricity demand of generation companies and/or distribution utilities to be sourced from indigenous natural gas. Such minimum percentage shall be reviewed and adjusted by the DOE as may be necessary.

Subject to viability, the PDNGI Facilities may be designed and constructed to ensure the accommodation of both indigenous natural gas and/or imported natural gas, pursuant to the standards determined by the DOE. The DOE shall establish measures to support the supply and use of indigenous natural gas in the domestic downstream natural gas sector.