Philippine Fuels Quality Standards and Thrusts

ZENAIDA Y. MONSADA

Director, Oil Industry Management Bureau Department of Energy

National Workshop on Clean Fuels & Vehicles

DOE/ CAI-Asia/ Partnership for Clean Fuels & Vehicles

November 16, 2009, Astoria Plaza Hotel, Pasig City

EMISSION FUEL

QUALITY

ENGINE

DESIGN

ENGINE

MAINTENANCE

VEHICLE

USE

TRAFFIC

MANAGEMENT

Fuels (oil) and Pollution

FUEL EMISSIONVEHICLE

DOEDOTC / LTO / LTFRB

MMDA / DTI / DOSTDENR

Fuel quality is one of the factors

contributing to pollution Fuels and vehicles are both

critical to air quality.

Coordination among respective

authorities is a must!

Local Oil1.80% Natural Gas

8.04%

Local Coal4.80%

Geothermal23.22%

Hydropower6.15%

Solar, Wind & Micro-hydro

0.01%

Biomass13.79%

CME0.13%

Ethanol0.02%

Imported Oil31.16%

Imported Coal10.88%

Energy Mix

Coal

25%

Natural Gas

32%

Geo

18%

Hydro

16%

Oil

8% Solar & Wind

0%

Power Mix

Oil Situation in the PhilippinesShare in Energy/Power Mix

society

energy

environ ment

economy

Security

Accessibility

Sufficiency

reducing

import

dependence

reducing CO2 and

other emissions

improving

economic activity

esp in countryside

Cleaner Air Climate Change Mitigation/Adaptation

Reasonable Price Affordable Price Generate Income

Philippine Energy PolicyConsistent with Global Thrust

energy

oil (esp. transport)

alternative fuels

renewable indigenous LPG

biofuels CNG

•Finite resource

•Pollution

•High price

•Imported

II. SHIFT TO CLEANER ALTERNATIVE FUELS

I. IMPROVE PETROLEUM FUEL QUALITY

Philippine Energy PolicyQuality (Cleaner) Fuels

RA 8749 –

Clean Air Act

of 1999

RA 9367 –

Biofuels Act

of 2006

RA 8479 –

Downstream

Oil Industry

Deregulation

Act of 1998

The TCPPA follows standards development/review procedure of

the Phil. Bureau of Product Standards which promulgates the

Phil. National Standards (PNS)

Pre-Clean Air Act : BPS TC-12 (Technical Committee on Petroleum Products & Lubricants)

Technical Committee on Petroleum Products & Additives(DOE-TCPPA)

Chairs : DOE and DENR

Members

Government : DOE, DENR, BPS-DTI, ITDI-DOST

Fuel Sector : Petron, Shell, Chevron, PIP, IPPCA

Engine Suppliers/Manufacturers : CAMPI, AMMDA, MDPPA

Consumer Sector / NGO : FilCar Foundation, AWMA

Academe : UP-NCTS, AIPSI

Fuel Quality

Clean Air Act: Standard Setting Mechanism

Technical Committee on Petroleum Products & Additives

Sitting: A. Lim (Secretariat Head), N. Pillariza (DOST), J. Rosete (Co-Chair, EMB), Dir. Z. Y. Monsada

(Co-Chair, DOE), N. Adao (BPS), R. S. Infante (Alternate Chair, DOE), Standing: B. Dionela (CAMPI), E.

Reyes (DOE-EUMB), M. Camagay (Academe, UP-NCTS), M. Aquino (MDPPA), A. Loinaz (FILCAR), J.

Matsuo (CAMPI), V. Medina (Chevron), W. Matiao (Chevron), J. Diago (Pilipinas Shell), R. Estrella

(Petron), R. Tamayo (AMMDA), A. Valera (Petron), D. Simbulan (Total)

Signing of DPNS/DOE QS:008:__ E-Gasoline Fuel Specification, September 12, 2006

Fuel Quality

Clean Air Act: Standard Setting Mechanism

FUEL QUALITY REQUIREMENTS

UNLEADED GASOLINE (ULG)

Aromatics 45% max. Jan. 1, 2000Benzene 4% max. Jan. 1, 2000

AKI 87.5% min. Jan. 1, 2001

RVP 9 psi max. Jan. 1, 2001

Aromatics 35% max. Jan. 1, 2003

Benzene 2% max. Jan. 1, 2003

AUTOMOTIVE DIESEL (ADO)

Sulfur 0.2% max. Jan. 1, 2001

Cetane No./Index 48 min Jan. 1, 2001

Sulfur 0.05% Jan. 1, 2004

INDUSTRIAL DIESEL (IDO)

Sulfur 0.3% max. Jan. 1, 2001

PHILIPPINE NATIONAL STANDARDS

(PNS)

UNLEADED MOTOR GASOLINE

• PNS 1131:2000 - ULG complying to CAA for

2000 specs

• PNS 1131:2001 - Multigrade ULG complying

to 2001 specs

• PNS 1131: 2002- ULG complying to CAA

2003 specs

DIESEL FUEL

• PNS 20:2000 - Diesel Oils (ADO/IDO)

complying to CAA 2001

• PNS/DOE QS 004:2003 - ADO

complying to CAA 2004

POST CAA - GASOLINE

• PNS/DOE QS 001:2005 – ULG (set Sulfur limit

to EURO 2 level)

• PNS/DOE QS 001:2009 - ULG (pure

petrol, distinct from E-10)

Fuel Quality

Clean Air Act: Requirements vs Accomplishments

BIOFUELS MANDATE

BIODIESEL

2007 mandate - 1% Biodiesel blend

2009 mandate - 2% Biodiesel blend

BIOETHANOL

2009 mandate (February)

- 5% substitution of the

annual gasoline sales

starting February 2009

2011 mandate

- 10% ethanol blend on

all gasolines

PHILIPPINE NATIONAL STANDARDS (PNS)

BIODIESEL & BLENDS

• PNS/DOE QS 002:2007 – Coconut Methyl Ester (B100)

(revision of 2003)

• PNS/DOE QS 004:2007 – FAME Blended Diesel Oil (B1)

• PNS/DOE QS 004:2009 – FAME Blended Diesel Oils (B2)

BIOETHANOL & BLENDS

• PNS/DOE QS 007:2005 – Anhydrous Bioethanol

(E100)/Denatured Fuel Ethanol

• PNS/DOE QS 008:2007 – E-Gasoline (E10)

• PNS/DOE QS 008:2009 - E-Gasoline (multigrade E-10)

RA 9367: Signed 1/12/07; Effective 2/6/07

Fuel Quality

Biofuels Act: Requirements vs Accomplishments

Spot checks and product sampling

oil refineries

import terminals / bulk plants

gas stations

biofuel plants --

Sampling

frequency – at least once a year inspected for major facilities

nationwide

Testing for PNS compliance

laboratory

portable diesel analyzer

Inter-lab correlation

Administrative actions

Fines and penalties for violations

Feedback to companies

With violations - require corrective measures and reports

W/o violations - issue “Clean Bill of Health”

diesel/biodiesel blend

biodiesel

Enforcement of Standards

Fuel Quality

DOE - OIMB

• Monitoring

Fuel quality/quantity (RA 8479 / RA 9367)

refining/marketing process, inventory, price (RA 8479)

• Additives Registration (RA 8479 / RA 8749)

• Fuel Quality Standard Setting (RA 8749 / RA 9367)

• Petroleum Facilities Standard Setting (MOA with BPS)

• Regulate as necessary (RA7638)

DOE - EUMB (RA 9367, MC 55, RA 9513)

• Accreditation & Monitoring of Biofuels Manufacture

• Transition Secretariat for NBB (RA9367, JAO)

DOE-ERTLS conducts testing of samples, DOE-Legal processes violations

Role of DOE Units vs Regulations

Fuel Quality

Conventional Alternative fuels & blends

Facilities

Gasoline stations LPG tanks/conversion kits Terminals Control equipment (correlation)

Codes of Practice

LPG Vehicle Conversion Retail Operation Bulk Storage, Handling & Distribution

Quality Standard Harmonization

Technical Committee on Petroleum Processes & Facilities

Facilities/Practice

Quality Standard

PNS/DOE Petroleum Products Retail Outlets

PNS/DOE FS 1-1:2005 – HSE

PNS/DOE FS 1-2:2005 – Underground Storage Tank

PNS/DOE FS 1-3:2005 – Piping System

PNS/DOE FS 1-4:2005 – Dispensing Pumps

PNS/DOE FS 4:2007 – Liquid Petroleum Product Depot

Facilities/Practice – Liquid Fuels

Quality Standard

OCTANE

RATING

MINIMUM

93

Informational/Safety Signs

Prohibited Acts

PNS/DOE FS 2:2006 – LPG Refilling Plant

PNS/DOE FS 3:2006 – Auto-LPG Dispensing Station

illegal

practice

correct

practice

Facilities/Practice

Quality Standard

Private (Garage-based) Public

34 Metro Manila 76

2 South Luzon 0

19 Visayas 1

11 Mindanao 12

66 112

San Antonio Power Plant

3 MW (1994)CVC

Malampaya Gas Field

2.7 TCF (2001)

1,000 MW Sta. Rita

First Gen/ IPP

560 MW San Lorenzo

First Gen/ IPP

1,200 MW Ilijan Power Plant

NPC IPP(KEPCO)

CNG Bus (2008)

Shell Refinery

Natural Gas Vehicles Program for Public Transport (NGVPPT)

•200 buses in the Southern Luzon-Manila route

•serviced thru the South Expressway NGV Refueling Station

•at a fixed/discounted price for 7 yrs.

Alternative Fuel: Natural Gas

Review & Formulate Standards

Technical Committee on Petroleum Products & Additives (TCPPA)

Int’l Fuel Quality Standards

Multi-lateral

bodies: ADB,

JICA, JETRO etc.

Inter-agency Cooperation:

DOE, DTI, BPS, DENR-EMB, DOTC

DOF, BIR, BOC, TC, DOST, etc.

Others:

Industry – Oil/Car

NGO’s, Academe

CAA

Clean Fuel Initiatives (WWFC)

Fuel Quality Regional Harmonization (WP 29 &

Vehicle Harmonization)

Alternative Fuels / Energy Security & Sufficiency

Monitoring: Sampling & Testing

R & D on Fuel Specification

Dev’t in Fuel Additives

Emission Stds/ Regulations

Vehicle Technology Dev’t.

Local Supply and Demand

Field/On-site testing

IRR for Standards

Biofuels Act of 2006

Laboratory testing

Fuel Quality Standard

Development/Enforcement

$/bbl P/$

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

M-84

J-85

N-85

S-86

J-87

M-88

M-89

J-90

N-90

S-91

J-92

M-93

M-94

J-95

N-95

S-96

J-97

M-98

M-99

J-00

N-00

S-01

J-02

M-03

M-04

J-05

N-05

S-06

J-07

M-08

M-09

10

15

20

25

30

35

40

45

50

55

60

Crude Forex P/1$

Fuel Quality Challenges

Oil Price / Forex

Industrial Consumer /End User Tank Truck

Tank TruckTankers/Barges

Retail Outlet

Refinery

Depot/Terminal

White Oil Pipeline Black Oil Pipeline

Product Imports

Product Exports

Refinery/Import/Export Terminal

CrudeImports

PRYCE NATIONPETRONAS

LPG Retail

Fuel Quality Challenges

Supply Availability/Accessibility

1. Organize the following with CAI-ASIA Center:

• National stakeholders workshop on clean fuels and vehicles

to develop an action plan moving to EURO IV (Nov. 16, 2009)

• Organize a biofuels roundtable discussion to update

stakeholders on biofuels initiative in the Phils., in Asia and the

World (Nov. 17, 2009);

2. Pursue deliberation of fuel quality standards for Euro IV

3. Pursue acquisition of mobile monitoring/testing facilities

4. Pursue establishment of fuel marking system

5. Pursue active participation in regional initiatives towards

harmonization of standards for fuels/biofuels.

6. Implement clean fuels and vehicles action plan.

7. Inventory all laws, rules and regulations and standards,

frameworks and plans relating to fuels.

Fuel Quality Challenges

Next Steps

Thank you!