Philippine Fuels Quality
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- Valentine Sherman
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1 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
2 Fuels (oil) and Pollution Fuel quality is one of the factors contributing to pollution FUEL QUALITY EMISSION ENGINE DESIGN Fuels and vehicles are both critical to air quality. Coordination among respective authorities is a must! FUEL VEHICLE EMISSION VEHICLE USE ENGINE MAINTENANCE TRAFFIC MANAGEMENT DOE DOTC / LTO / LTFRB MMDA / DTI / DOST DENR
3 Oil Situation in the Philippines Share in Energy/Power Mix Energy Mix Power Mix Imported Coal 10.88% Local Oil 1.80% Natural Gas 8.04% Local Coal 4.80% Hydro 16% Oil 8% Solar & Wind 0% Coal 25% Imported Oil 31.16% Geothermal 23.22% Ethanol 0.02% CME 0.13% Biomass 13.79% Hydropower 6.15% Solar, Wind & Micro-hydro 0.01% Geo 18% Natural Gas 32%
4 Philippine Energy Policy Consistent with Global Thrust Security Accessibility Sufficiency reducing import dependence energy society Reasonable Price Affordable Price Generate Income economy environ ment Cleaner Air Climate Change Mitigation/Adaptation improving economic activity esp in countryside reducing CO 2 and other emissions
5 Philippine Energy Policy Quality (Cleaner) Fuels I. IMPROVE PETROLEUM FUEL QUALITY II. SHIFT TO CLEANER ALTERNATIVE FUELS energy RA 8749 Clean Air Act of 1999 Finite resource Pollution High price Imported oil (esp. transport) RA 9367 Biofuels Act of 2006 alternative fuels renewable indigenous LPG RA 8479 Downstream Oil Industry Deregulation Act of 1998 biofuels CNG
6 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 : Consumer Sector / NGO : Fuel Quality Clean Air Act: Standard Setting Mechanism CAMPI, AMMDA, MDPPA FilCar Foundation, AWMA Academe : UP-NCTS, AIPSI 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)
7 Fuel Quality Clean Air Act: Standard Setting Mechanism Technical Committee on Petroleum Products & Additives Signing of DPNS/DOE QS:008: E-Gasoline Fuel Specification, September 12, 2006 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)
8 FUEL QUALITY REQUIREMENTS UNLEADED GASOLINE (ULG) Aromatics 45% max. Jan. 1, 2000 Benzene 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 Fuel Quality Clean Air Act: Requirements vs Accomplishments PHILIPPINE NATIONAL STANDARDS (PNS) UNLEADED MOTOR GASOLINE PNS 1131: ULG complying to CAA for 2000 specs PNS 1131: Multigrade ULG complying to 2001 specs PNS 1131: ULG complying to CAA 2003 specs DIESEL FUEL PNS 20: Diesel Oils (ADO/IDO) complying to CAA 2001 PNS/DOE QS 004: 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: ULG (pure petrol, distinct from E-10)
9 Fuel Quality Biofuels 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 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: E-Gasoline (multigrade E-10) RA 9367: Signed 1/12/07; Effective 2/6/07
10 Fuel Quality Enforcement of Standards Spot checks and product sampling Sampling oil refineries import terminals / bulk plants gas stations biofuel plants -- diesel/biodiesel blend biodiesel 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
11 Role of DOE Units vs Regulations 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
12 Quality Standard Harmonization 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
13 Quality Standard Facilities/Practice Technical Committee on Petroleum Processes & Facilities
14 Quality Standard Facilities/Practice Liquid Fuels 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 Informational/Safety Signs OCTANE RATING MINIMUM 93 Prohibited Acts
15 Quality Standard Facilities/Practice PNS/DOE FS 2:2006 LPG Refilling Plant PNS/DOE FS 3:2006 Auto-LPG Dispensing Station Private (Garage-based) Public 34 Metro Manila 76 2 South Luzon 0 19 Visayas 1 11 Mindanao illegal practice correct practice
16 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 San Antonio Power Plant 3 MW (1994)CVC 560 MW San Lorenzo First Gen/ IPP Shell Refinery 1,000 MW Sta. Rita First Gen/ IPP 1,200 MW Ilijan Power Plant NPC IPP(KEPCO) Malampaya Gas Field 2.7 TCF (2001) CNG Bus (2008)
17 Fuel Quality Standard Development/Enforcement CAA Biofuels Act of 2006 Clean Fuel Initiatives (WWFC) Fuel Quality Regional Harmonization (WP 29 & Vehicle Harmonization) Alternative Fuels / Energy Security & Sufficiency Review & Formulate Standards Technical Committee on Petroleum Products & Additives (TCPPA) Monitoring: Sampling & Testing Int l Fuel Quality Standards R & D on Fuel Specification Emission Stds/ Regulations Vehicle Technology Dev t. Field/On-site testing Laboratory testing Dev t in Fuel Additives Multi-lateral bodies: ADB, JICA, JETRO etc. IRR for Standards Inter-agency Cooperation: DOE, DTI, BPS, DENR-EMB, DOTC DOF, BIR, BOC, TC, DOST, etc. Local Supply and Demand Others: Industry Oil/Car NGO s, Academe
18
19 $/bbl P/$ 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 Crude Forex P/1$ Fuel Quality Challenges Oil Price / Forex
20 Fuel Quality Challenges Supply Availability/Accessibility Crude Imports Refinery PRYCE NATION PETRONAS Refinery/Import/Export Terminal Product Imports Product Exports White Oil Pipeline Black Oil Pipeline Tankers/Barges Tank Truck Depot/Terminal Industrial Consumer / End User Tank Truck LPG Retail Retail Outlet
21 Fuel Quality Challenges Next Steps 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.
22 Thank you!
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