COMPRESSED NATURAL GAS

Natural Gas Vehicle Program For Public Transport (NGVPPT) The Natural Gas Vehicle Program for Public Transport (NGVPPT) aims to promote the utilization of compressed natural gas (CNG) in the transport sector in consonance with the goal of ensuring fuel supply diversification and supply security. Primarily geared for the utilization of Malampaya gas deposit in offshore Palawan, the government is also looking to importation of Liquefied Natural Gas (LNG) as a long-term solution to sustain the use of CNG, a relatively clean fossil fuel that can help improve urban air quality through the reduction of harmful vehicular emissions. As of end of 2011, the following have been achieved for the Market Development component of the Program: CNG Price within the Pilot Phase sold at Php14.52/DLE or Php 18.38/kg 1 CNG Mother Refueling Station operating at Tabangao, Batangas 1 CNG Daughter Refueling Station operating at South Luzon Expressway (SLEX), Brgy. Sto. Tomas, Bian, Laguna Sixty One (61) existing CNG Buses in the country, with 41 units in actual operation (20 awaiting franchises to operate) Six (6) bus operators accredited by the DOE for CNG bus operation under the NGVPPT o HM Transport, Inc. o KL CNG Bus Transport o BBL Trans System Corp. o Greenstar CNG Express, Inc. o RRCG Transport System Co. o N. Dela Rosa Liner, Inc.

Most recent updates of NGVPPT, with regard to infrastructure development: Approved application of PNOC-ECs as Category IV CNG Refueling Station Operator to participate in NGVPPT for the putting up of the 2nd Daughter Station in Batangas City Three Memoranda of Agreement was signed by DOE and concerned stakeholders, to wit: a. Amendment to the Memorandum of Agreement for Compressed Natural Gas for Public Transport Pilot Project between the DOE and the Service Contract No. 38 consortium composed of Shell Philippines Exploration B.V., Chevron Malampaya LLC., and PNOC Exploration Corporation. This amendment agreement extends the NGVPPT Pilot Phase to 2018 and ensures the CNG supply for 200 buses; b. Takeover of Mamplasan CNG Daughter Station between Philipinas Shell Petroleum Corporation and PNOC-EC. This agreement transfers PSPCs rights and privileges with respect to the ownership, operation and management of the lone CNG Daughter Station in Mamplasan, Laguna to PNOC-EC; and c. Sale of CNG between PNOC-EC and DOE-accredited CNG Bus Operators. This agreement provides an update pricing mechanism for the retailing of CNG.

STANDARDS Forty-nine sets (49) of standards of ISO standards were promulgated as Philippine National Standards for the Natural Gas Utilization in Transport in June 2003. View List of Standards.pdf

(* please refer to Bureau of Product Standards Department of Trade & Industry for complete details of the Philippine National Standards for CNG and related technologies)

POLICY INITIATIVES ON NGVPPT

Department Circular No. 2006-04-0004: Adopting Department Circular No. DC2004-04-004 entitled "Guidelines on the Issuance of Certificate of Accreditation and Certificate of Authority to Import under the Natural Gas Vehicle Program for Public Transport" as the implementing rules and regulations of Executive Order Nos. 396 and 488 dated December 31, 2004 and January 12, 2006 respectively, and the Department Circular No. DC200507-006 dated July 5, 2005 and amending certain provisions of the said DC2004-04-004.

View Complete File: DC2006-04-0004.pdf

Department Circular No. 2005-07-006: Directing the Enhanced Implementation of the Natural Gas Vehicle Program for Public Transport (NGVPPT) and the Development of Compressed Natural Gas (CNG) Supply and Infrastructure.

View Complete File: DC2005-07-006.pdf

Executive Order No. 396: Reducing the Rates of Import Duty on Compressed Gas Motor Vehicles and Natural Gas Vehicle Industry-Related Equipment, Parts and Components under Section 104 of the Tariff an Customs of 1978 (Presidential Decree No. 1464), as amended. Department Circular No. 2004-04-004: "Guidelines on the Issuance of Certificate of Accreditation (CA) and Certificate of Authority to Import (CAI) under the Natural Gas Vehicle Program for Public Transport.

View Complete File: DC2004-04-004.pdf

Executive Order No. 164: Modifying the Nomenclature and the Rates of Import Duty on Various Products under Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464, as amended). Executive Order No. 290: Implementing the Natural Gas Vehicle Program for Public

Transport.

View Complete File: EO No. 290

(sidebar components) A. PILOT PROJECT TERMS The Pilot Project is executed through a Memorandum of Agreement (MOA) between the Department of Energy (DOE), Shell Philippines Exploration B.V., Shell Philippines LLC, Chevron Texaco Malampaya LLC, PNOC Exploration Corporation and Pilipinas Shell Petroleum Corporation dated August 4, 2003. Pilot Project runs for seven (7) years covering, among others, the establishment of a Mother-Daughter Refueling

System capable of supplying CNG for initially seventy (70) CNG public utility buses and deployment of two hundred (200) units of CNG buses. B. SUPPLY INFRASTRUCTURE/SYSTEM CNG supply comes from Malampaya gas field with a volume commitment up to 200 CNG buses for the Pilot Phase. CNG is hauled from the CNG Mother Station at the Malampaya On-Shore Gas Plant in Tabangao, Batangas, to the PSPC CNG Daughter Refilling Station located at the Shell Tollway Plaza, Barangay Sto. Tomas, Mamplasan, Binan, Laguna, using a Mobile Accumulator Transport System (MATS) The CNG Daughter Station is designed to serve a maximum of 70 CNG buses Two (2) CNG ST4 trailer with three (3) units of MATS module each, make a single trip each day from the CNG Mother Station to the CNG Daughter Station.

C. ACCREDITATION

Guidelines on the Issuance of Certificate of Accreditation under the Natural Gas Vehicle Program for Public Transport including checklist/requirements (please refer to DC2006-04-0004 and DC2004-04-004). Application Form for Accreditation (Download .pdf file) Project Outline (Downloadable forms) o Category 1 <Manufacture/ Assembly of Natural Gas Vehicle (NGVs)> o Category 2 <Operation of NGVs> o Category 3 <Re-powering/Retrofit/Conversion of NGVs> o Category 4 <CNG Refueling Station/ Operation > o Category 5 <Others i.e. R&D activities, shuttle service of Government, etc.>

D. PROCESS FLOW CHART: E. FAQs: What is Natural Gas?

(attached)

Natural gas is naturally occurring gaseous petroleum accumulating beneath the earth's crust. It is composed of hydrocarbons made up mainly of methane which is typically about 85-99% of the total volume. Its other constituents include inert gases such as Nitrogen (N2) and Carbon Dioxide (CO2) and nonhydrocarbon gases, and water.

What is Compressed Natural Gas? Compressed Natural Gas (CNG) is natural gas compressed to about 16-20 MPa to achieve practical energy density for storage on-board a vehicle. What is Natural Gas Vehicle (NGV) NGVs refer to vehicles that are powered by natural gas. There are three types of NGVs currently available. The first type requires a retrofit conversion for liquid fueled engines to run on either bi-fuel or dual fuel. A bi-fuel conversion allows the engine to run on petrol or gas but not both simultaneously, while a dual fuel conversion allows the engine to operate on either a mixture of gas and diesel. The second type is the conversion of liquid fueled engines to a dedicated natural gas set-up. The third type is the CNG Original Engine Manufactured (OEM) vehicle. What are the advantages of natural gas as a vehicle fuel? Natural gas has inherent clean burning properties that enable NGVs to produce lower pollutant emissions than petrol-powered vehicles. It is a leadfree fuel that produces virtually no sulfur oxides or particulates and up to 30% less CO2. Because it is clean burning, natural gas reduces the required maintenance on vehicles. NGVs are safer than petrol-powered vehicles. Natural gas is lighter than air and therefore, dissipates quickly. Ignition is possible only when gas to air ratio is between 5-15% by volume. Its ignition temperature is much higher than the conventional fuel (CNG-800oC, Diesel-280oC and Gasoline-500oC). CNG fuel storage cylinders are made of thick-walled aluminum or steel and are subjected to severe tests to withstand both crashes and heat which are far better than the standard petrol tank of thin sheet metal or plastic. F. STAKEHOLDERS DIRECTORY: (attached) NGVPPT Directory ACCREDITED BUS OPERATORS G. PHOTO GALLERY: From various activities of NGVPPT o NGVPPT Launching o Ceremonial Groundbreaking and Capsule Laying of the CNG Mother Station in Tabangao, Batangas o Presentation of the first CNG bus to GMA in Malacanang o Inauguration of CNG Daughter Station in Mamplasan, Binan, Laguna o Libreng Sakay of CNG Provincial Buses