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Republic of the Philippine

DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO: _90C2019-02- 0004 1

IMPLEMENTING THE NATURAL GAS QUALITY STANDARD FOR ALL NATURAL
GAS SUPPLY IN THE PHILIPPINES

WHEREAS, Republic Act No. 7638, “An Act Creating the Department of Energy
(DOE)”, tasked the DOE to formulate policies, programs, rules and regulations as
may be necessary to guide private sector investors as well as operators of both
government and private entities involved in energy resource supply and distribution;

WHEREAS, Executive Order (EO) 66, “Designating the Department Of Energy as the
Lead Agency in Developing the Philippine Natural Gas industry”, designated the DOE
as the lead government agency in ensuring a unified and coordinated effort towards
establishing a successful and robust Natural Gas Industry;

WHEREAS, PNS/DOE QS 011:2016, “Petroleum gases — Natural gas — Quality
specification” as prepared by the Technical Working Group (TWG) under the
Technical Committee on Petroleum Products and Additives (TCPPA) of the DOE was
promulgated last 20 June 2016 as a Philippine National Standard by the Bureau of
Philippine Standards. The standard specifies the requirements for all natural gas

supply in the Philippines.

NOW, THEREFORE, in consideration of all the foregoing, the DOE issues, adopts
and promulgates the following:

Section 1. Standard Implementation. 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
specifications of PNS/DOE QS 011:2016 “Petroleum gas — Natural gas

— Quality Specification’.

Section 2. Standard Measurements of Natural Gas. All units of measurement
shall comply with the specifications of PNS/DOE QS 011:2016

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Section 3.

Section 4.

“Petroleum gas — Natural gas — Quality Specification’, expressed in S|
units as follows:

(a) The basic unit of measure of natural gas shall be expressed in
cubic meters (m3) under Standard Temperature and Pressure
(STP) of 288.15°K and 1.01325 bars (1 atm).

(b) The basic unit of measure of natural gas energy shall be
expressed in Joules and all reporting will be in Joules (J) with a
prefix such as Megajoules, Terajoules, Petajoules, etc., as
appropriate.

(c) The measurements for Superior Calorific Value and Wobbe
Index shall be expressed in Megajoules per cubic meter
(MJ/m3).

(d) |The measurements for the chemical composition of natural gas
such as Methane, Oxygen, Total Inerts, etc., shall be expressed
in percent mole (% mol).

(e) The measurements for Total Sulfur and Hydrogen Sulfide shall
be expressed in milligrams per cubic meters (mg/m3).

Reporting Requirements. All entities engaged in the business of
importing, trading, supply and distribution of natural gas shall submit the
appropriate reportorial requirements as required in Annexes B and C of
Department Circular No.: DC 2017-11-0012, otherwise known as the
“Philippine Downstream Natural Gas Regulation (PDNGR)”. All units of
measure shall comply with Section 2 (Standard Measurements of
Natural Gas) hereof.

Non-Compliance. Non-compliance is committed when an entity
engaged in the business of importing, trading, supply and distribution of
natural gas:

a) Supplies natural gas to end-consumers in the country, not complying
with the specifications of PNS/DOE QS 011:2016 “Petroleum gas —
Natural gas — Quality Specification” as stated in Section‘.

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b) Standard Measurements of Natural as stated in Section 2, hereof not
followed in the submission of the appropriate reportorial requirements
as required in Annexes B and C of Department Circular No.: DC
2017-11-0012, otherwise known as the PDNGR.

Section 5. Penalties. Failure to comply with the requirement of this Department
Circular shall be ground for the suspension or cancellation of the
accreditation and the non-issuance of Acknowledgement to Import (AT!)
and Acknowledgement to Supply and Transport (AST) for succeeding
applications, in accordance with Annex C, “Importer and Supplier
Accreditation Guidelines” of the PDNGR.

Section 6. Separability Clause. Should any provision herein be declared invalid
or unconstitutional by a court of competent jurisdiction, the other
provisions not so declared shall not be affected thereby.

Section 7. Ammendment Clause. The DOE may revise or amend this Circular as
the need arises in the interest of the public service.

Section 8. Effectivity Clause This Circular shall be effective fifteen (15) days
following its complete publication in a newspaper of general circulation
and shall remain in effect until revoked. Copies thereof shall be filed
with the University of the Philippines Law Center — Office of the National

Administrative Register.

Bonifacio Global City, Taguig, Metro Manila, FE Bot , 2019

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FONSO-G-CUSI
Secretary

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en ., Republic of the Philippines

‘S24 DEPARTMENT OF ENERGY
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