The discovery of natural gas in 1989 at the Camago structure in the offshore deepwater area of northwest Palawan paved the way for the Philippines to expand its available energy resources. The discovery is the single largest investment in an energy project and marks the birth of a natural gas industry in the Philippines. An endeavor with immeasurable significance, it typifies an effort to search for alternative indigenous energy resources to fuel our country's economic activities at an affordable cost with minimal impact to the environment.

The Malampaya Gas-to-Power Project not only provides a foundation for sustainable development but likewise opens up unparalleled investments through expansion of gas markets to non-power applications particularly for the transport sector to take advantage of the benefits natural gas offers to improve our local air quality.

Natural gas as an alternative fuel in vehicles has many desirable qualities such as abundance. However, its most desirable characteristic is its clean burning properties. This inherent characteristic offers a solution to the pressing environmental problem in urban areas like in Metro Manila. Natural Gas Vehicles or the technology of using natural gas as fuel in vehicles (through conversion or procurement of an original engine manufactured for its use) is technically proven and already available in the world market. It has the potential to produce substantially lower pollutant emissions than conventionally fuelled vehicles. Natural gas also has compiled an excellent safety record around the world, not only on board a vehicle but also during its production and pipeline distribution as well.

Natural gas is stored on board a vehicle as Compressed Natural Gas (CNG). It is compressed to a pressure range of 16 to 20 MPa due to its low energy density and is stored in specially designed steel or aluminum cylinders.

Rapid development of an NGV industry has occurred in economies where environmental protection is of major concern and where a large difference between the price of CNG and conventional liquid fuels exist. New Zealand, Italy, USA, Canada and Australia have all had considerable experiences in the development and use of NGVs, together with more than 40 other economies in Europe, Asia, the Americas and the Middle East.

Development of NGVs is therefore, perceived by government as an initiative to address existing and emerging air degradation problems in Metro Manila.