Philippines: Towards an Improved and Harmonized Fuel Quality ...

Philippines: Towards an
Improved and Harmonized
Fuel Quality Standards
Zenaida Y. Monsada
Director, Oil Industry Management Bureau
Department of Energy, Philippines
Fifth Asian Petroleum Technology Symposium, Japan Petroleum Energy Center
January 23-25, 2006, Jakarta, Indonesia

I. Background
– Mandates/DOE Role
II. Present Situation
– Fuel/Facilities Quality
Conventional Fuels
Alternative Fuels
III. Government Thrusts/Plans
– Harmonization
Outline
– Issues/Measures

Background

EMISSION
FUEL QUALITY ENGINE DESIGN
VEHICLE USE
Fuel Quality – One of the
Factors Contributing to Pollution
TRAFFIC MANAGEMENT
ENGINE MAINTENANCE

DOE Role –
Fuels and Vehicle Emissions
FUEL VEHICLE
EMISSION
DOE DOTC / LTO / MMDA/DTI DENR

OIMB Mandate
DOE Role
• Monitoring (RA 8479)
� Fuel quality/quantity, refining/marketing process,
inventory, price
• Additives Registration (RA 8479 / RA 8749)
• Fuel Quality Standard Setting (RA 8749)
• Petroleum Facilities Standard Setting (MOA with BPS)
• Regulate as necessary (RA7638)

CAA Requirements – Fuel Specs
Unleaded Gasoline
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
Sulfur 0.2% max Jan. 1, 2001
Cetane No./Index 48 min Jan. 1, 2001
Sulfur 0.05% max Jan. 1, 2004
Industrial Diesel
Sulfur 0.3% max Jan. 1, 2001

Present Situation

Fuel Quality Standards Development
CAA Accomplishment
Conventional Fuels
1. PNS 1131:2000 - Unleaded Gasoline (ULG) for 2000
specs
2. PNS 20:2000 - Diesel Oils for 2001 specs
3. PNS 1131:2001 - (Multigrade ULG)
4. PNS 1131:2002 (DOE 001:2002) - ULG for 2003 specs
5. PNS/DOE QS 004:2003 - Diesel Oils for 2004 specs

Fuel Quality Standards Development
Conventional Fuels
Post CAA – Continuing quality improvement to
harmonize international/regional environmental
standard for fuel quality
1. PNS/DOE QS 001:2005 - Unleaded Motor Gasoline
� Reduced the maximum sulfur content to 0.05% mass for all grades
(EURO 2 conformance);
� Pb contamination tolerance reduced to 0.005 g/L maximum;
� Ethers reduced to 2% maximum by volume
2. PNS/DOE QS 006:2005 - Fuel Oil (Bunker)
� Regular grade, (3.0% sulfur by mass, max.)
� Special grades (2.0% and 1.0% sulfur by mass, max.)
3. DPNS/DOE QS 004:2006 – Automotive Diesel Oil
� Stricter lubricity of 400 microns, max.
� Additional property on water content at 0.05% vol., max.

DOE Role –
Fuel Quality Standards Setting
Standard Development/Review
Technical Committee on Petroleum Products & Additives
Signing of DPNS/DOE QS:008:2006 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)

Diesel
Benzene Aromatics Sulfur Sulfur
(% vol.) (% vol.) (% wt.) (% wt.)
EURO 1 0.20
EURO 2 0.05 0.05
EURO 3 1.0 42.0 0.015 0.035
EURO 4 1.0 35.0 0.005 0.0050 / 0.0010
WWFC
1 5.0 50.0 0.10 0.20
2 2.5 40.0 0.015 0.03
3 1.0 35.0 0.003 0.005
4 1.0 35.0 0.001 0.001
RP 2.0 35.0
SOURCES:
WWFC 4th Edition, 2006
ADB Regional Workshop, 2006
COMPARABLE FUEL SPECS
Gasoline
0.05 0.05

Alternative Fuels/ Fuel Blends
CNG/Natural Gas
Bio-fuels:
CocoMethyl Ester Fuel Ethanol
Auto Gas/LPG
Wind Solar Electric
Hydrogen Fuel Cells
Water-based
Fuel Blends Hybrids Dual

Fuel Quality vs. Import Dependence
Year Diesel Gasoline Diesel Gasoline
2006 0.05 35 / 2 42.0 43.2
2005 0.05 35 / 2 39.4 41.1
2004 0.05 35 / 2 46.6 48.0
2003 0.20 35 / 2 32.7 36.0
2002 0.20 45 / 4 32.0 26.6
2001 0.20 45 / 4 20.8 22.7
2000 0.20 45 / 4 17.7 22.3
1999 0.50 45 / 4 10.5 9.1
1998 0.50 45 / 4 16.6 16.6
1997 0.50 55 / 5 10.3 11.7
1996 0.50 55 / 5 8.2 1.3
* As of YTD Sept’06

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
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
5
10
15
20
25
30
35
40
45
50
55
60
Dec06
58.68$/bbl
Oct90
31.52$/bbl
Oct00
30.52$/bbl
Jan 17, 1991
Desert Storm
Jul86
7.84$/bbl
20.45P/$
Nov88
10.51$/bbl
21.38P/$
Jun90
13.22$/bbl
23.10P/$
Feb91
14.31$/bbl
28.00P/$
Mar94
12.14$/bbl
27.59P/$
Apr97
16.63$/bbl
26.36P/$
Feb99
10.02$/bbl
38.80P/$
Nov01
17.67$/bbl
51.99P/$
Jun99
15.50$/bbl
37.90P/$
Jun02
23.91$/bbl
50.43P/$
Dec04
34.20$/bbl
56.20P/$
Nov05
51.39$/bbl
54.53P/$
DUBAI CRUDE PRICES/FOREX
March 1984 – December 2006
$/bbl P/$

COMPLETED
� PNS 2020:2003 – 100% Coco-methyl ester (B100)
� PNS/DOE QS 003:2003 – 2-T Lubricating Oils, considers
agricultural feedstock such as CME
� PNS/DOE QS 005:2005 – Domestic LPG & Auto-LPG
� PNS/DOE
Bioethanol
QS 007:2005 – Anhydrous Bioethanol/Fuel
� DPNS/DOE QS 008:2006 – E-Gasoline (E10)
ON-GOING
Fuel Quality Standards Development
Alternative Fuels
� DPNS/DOE QS 009:2006 – B1 (1% CME-diesel blend)
� DPNS/DOE QS 010:2006 – Jatropha

Petroleum Facility Standards Setting
Standard Development/Review
Technical Committee (Facility)
• BPS TC 68, designation
• DOE-TCPPF DOE TCPPF by virtue of a MOA between DOE-OIMB DOE OIMB and DTI-BPS DTI BPS
Chair : DOE
Members
Government : DOE-OIMB, DENR-EMB, DTI-BPS, DILG-BFP,
Testing : DOST-MIRDC
DOLE (BWC, OSHC)
Industry : Caltex, Shell, Petron, Total, IPPCA (Seaoil, TWA)
Prof. Association : SOPI
Invitees : Unioil
** TWG’s assist mother TC in the drafts formulation/deliberation

COMPLETED
Petroleum Facility Standards
Development
� PNS/DOE FS 1: 2005 – Petroleum Products Retail Outlet
1-1:2005 – Health, Safety & Environment
1-2:2005 – Underground Storage Tank
1-3:2005 – Piping System
1-4:2005 – Dispensing Pump
� PNS/DOE FS 2: 2006 – LPG Refilling Plant
� PNS/DOE FS 3:2006 – Auto-LPG Dispensing Station
ON-GOING
� DPNS/DOE FS 4:2006 – Liquid Petroleum Product Depot
� DPNS/DOE FS ______– LPP Portable Containers

DOE Role - Additives Registration
Additive Registration
(Guidelines Procedure)
� Application
� Endorsement to EMB
� Additive Evaluation
� Certification
» Types of additives applied:
- Octane enhancer
- Lubricity/friction modifier
- Emission/smoke suppressant
- Fuel efficiency improver
- Detergent
- Deposit control
- Anti-valve Anti valve set recession and others
Registration Status
Permanent - 44
Provisional - 44
Under review - 49
As of October 2006

�� Monitoring of Imports
�� Product Import COQ
�� 100% Compliance
DOE Role - Monitoring
��Monitoring Monitoring Activities at Refineries, Bulk Plants and
Gasoline Stations
� Sampling of petroleum products
� Inspection of facilities
� Marker test
� Adulteration test
�� Product Testing at NPTL
� Philippine National Standards (PNS)

Product Quality
DOE Testing Capability

Retail Rules – Product Quality
ADULTERATION – NOT MEETING
Philippine National Standard (PNS)
Color Coding of
Gasoline based on
Octane Grade
PNS 1131:2001
RON
COLOR
95 BLUE
93 GREEN
93 w/AVSR RED
93 (E10) VIOLET
81 ORANGE

Retail Rules – Product Quantity
UNDERDELIVERING
10 liters
Calibrating Bucket
100
50
0
-50
-100
In mL
OVERDELIVERING
PERFECT
CALIBRATION
TOLERABLE
UNDERDELIVERING

Retail Rules – Industry Practice
Safety & Informational Signs
OCTANE RATING
MINIMUM
93

Fuel Quality Improvement Program
VEHICLE
INDUSTRY
PROPOSAL
• Euro 2 – 2005
• Euro 4 – 2010
(WP-29 (WP 29 taking
challenge of car
manufacturers
for 2010)
GOVERNMENT THRUSTS
• Continuous improvement of
fuel quality standards
Gasoline
• Further reduction of sulfur
• Phase-out of AVSR and other
deposits forming additives
• Phase in of deposit control additives
Diesel
• Further reduction of sulfur
• Improve T90
Biofuels/Blends
• Generic
• Coconut, jatropha, used cooking oil

Plans – Quality Regulation
Promotion of Alternative Fuels
Enhanced Standards Enforcement/ Compliance
Monitoring
• Partnership with private sector on compliance monitoring
• Acquisition of Portable (on-site) testing equipt
• Enforcement of reportorial requirements
• Enhancement of adjudication capability
• Encourage industry best practice
Harmonization of Standards (ASEAN +, US, EU…)
• Fuel Quality – conventional, alternative
• Facilities – gasoline stations; LPG vehicles, parts, conversion
kits; terminals
• Codes of Practice – LPG vehicle conversion; retail operation;
bulk storage, handling & distribution

Harmonization of Standards
Benefits of harmonized fuel quality standard for
biofuels
� Facilitate trade across boarders ensuring supply
availability
� Align readily local fuel standards to the WWFC vis-àvis
local emission regulations
� General biodiesel standard and its blends vis-à-vis
emerging vehicle technologies

Fuel Quality Improvement
Issues/Constraints
�� SUPPLY AVAILABILITY
�� PRICE
�� INVESTMENT REQUIREMENT AND CLIMATE
�� TIMING
�� COMPATIBILITY OF FUEL WITH VEHICLE
�� FUEL QUALITY VS. EMISSION STANDARDS
�� MONITORING

Harmonization of Standards
Issues/Constraints
�� Quality of biofuels, biofuels,
the Philippine Coco-
biodiesel or CME
�� Role of the agricultural sector for supply
security
�� Role of private sector to meet local and
international demand of biofuels. biofuels