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Downstream Natural Gas

The birth of the Philippine natural gas industry brings the country closer to its goal of harnessing environment friendly fuels to ensure a stable, diverse and secure energy supply. However, the growth of this industry is anchored on the development of additional gas-generated capacity, other non-power applications and the necessary infrastructure that is to bring the natural gas to its potential markets. The infrastructure includes the appropriate pipeline transmission and distribution networks, LNG terminals and facilities, gas refilling stations for CNG-run vehicles and ancillary facilities.

In the absence of the law for the natural gas sector, the stage for the industry’s development has been set with the preparation of a gas policy framework, industry rules and regulations. A clear and concise policies, objectives, programs and strategies formulated by the DOE, together with the critical cooperation and participation of the private sector, development  of a natural gas industry is ensured.

While there is still much to be done, the DOE will be at the forefront of efforts to rally the participants in this new industry to success.

 STUDIES:

Documents to Accompany Application for Permit to Supply Natural Gas

All applications for Permit to Supply Natural Gas shall be accompanied by such documents as are applicable and relevant, in the form of exhibits, including but not limited to the following:

a) Certificate of Registration with the Securities and Exchange Commission, if applicant is a corporation; or Certificate of Filing of Amended Articles of Incorporation and By-Laws, for existing corporations when applicable;

b) Company/Corporation profile and organizational structure (Philippines and abroad) indicating complete names and positions of personnel and their respective roles and assignment;

c) Complete name and complete address of company/corporation (abroad and/or in the Philippines);

d) A certified true copy of applicant’s articles of incorporation and by-laws, if the applicant is a corporation;

e) A List of the names and business addresses of applicant’s officers and directors, or similar officials, if the applicant is not a corporation;

f) If the applicant or any of its officers or directors, directly or indirectly, owns, controls, or holds with power to vote, ten (10) percent or more of the outstanding voting shares of any Person or organized group of Persons engaged in Production, Transmission, Distribution, or pricing of Natural Gas, or of any Person or organized group of Persons engaged in the construction or financing of such enterprises or operations, a detailed explanation of each of the above relationships, including the percentage of voting strength represented by such ownership of shares. If any Person or organized group of Persons, directly or indirectly, owns, controls of holds with power to vote, ten (10) percent or more of the outstanding voting securities of applicant a detailed explanation of each such relationship;

g) A certified true copy of the applicant’s Gas Supply Contract with its prospective customer showing details of its pricing formula and/or pricing mechanism or Pro-forma copies of contracts to be entered into with potential customers for the CNG Refueling Facility. The supply contract shows volume of natural gas supplied is within the contracted volume.

h) A system-wide estimate of the quantity of Natural Gas and rate of delivery during each year to its customer showing:

1) Names and locations of Customers, showing the number of residential, commercial, firm industrial interruptible industrial, and other types of Customers and the names locations of each firm and interruptible Customer or more per calendar year together with an explanation of the end use to which each of these industrial Customers will put the gas;

2) Where applicable, total annual and peak day or hourly gas requirements by classification of service in subsection (1) above, divided as follows:

i. For each Gas Distribution Utility where Natural Gas is sold by applicant at retail;

ii. For each buyer under a Gas Sales and Purchase Contract;

iii. For all main line direct industrial gas Customers; and

iv. Pipeline use and unaccounted for Natural Gas for both the applicant and each buyer under a Gas Sales and Purchase Contract;

3) Explanation and derivation of basic factors used in estimating future requirements, and full details concerning all other sources of Natural Gas supply available to applicant and to each of its Customers;

i) International Standards used in hauling/delivery, storage, and handling/dispensing of natural gas to customer

j) Other LOI/documents/contracts on market for natural gas (customers) who will be supplied by the applicant

k) Sources of supply of natural gas that will be delivered to the prospective customers, duration of contract for the supply of natural gas to customers

l) Cost of conversion of potential market /industries, if applicable

m) Mode of transporting supply of natural gas to customers

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