DOE seeks comments on proposed natural gas rules

MANILA, Philippines — The Department of Energy (DOE) is implementing the rules for the Philippine natural gas supply as the country aims to become a liquefied natural gas (LNG) hub in the region.

The agency is seeking comments from industry stakeholders on its draft circular titled “Implementing the Natural Gas Quality Standard for All Natural Gas Supply in the Philippines” to ensure a unified and coordinated effort towards establishing a successful and robust natural gas industry.

Under its draft rules, all entities engaged in the business of importing, trading, supply and distribution of natural gas, shall supply natural gas to end-consumers in the country, complying with the PNS/DOE QS 011:2016 “Petroleum gas – Natural gas – Quality Specification.”

The standard, which specifies the requirements for all natural gas supply in the country, was accepted as the Philippine National Standard by the Bureau of Philippine Standards in June 2016.

The DOE is set to require all businesses engaged in natural gas to submit the appropriate reportorial requirements in compliance with the Philippine Downstream Natural Gas Regulation (PDNGR).

The agency has set standard measurements for natural gas, namely cubic meters (m3) for natural gas under Standard Temperature and Pressure (STP); Joules (J) for natural gas energy; megajoules per cubic meter (MJ/m3) for Superior Calorific Value and Wobbe Index; percent mole (% mol) for the chemical composition of natural gas such as methane, oxygen, total inerts, etc.; milligrams per cubic meters (mg/m3)for Total Sulfur and Hydrogen Sulfide.

If a business fails to comply, the DOE will suspend or cancel the company’s accreditation to import and transport natural gas in the country.The PDNGR details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.