philippine strategy on oil security 2003

8/10/2019 Philippine Strategy on Oil Security 2003

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Department of Energy

W01/3868

CURRENT STRATEGY

ON OIL SECURITY


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Philippine Downstream Oil Industry

Features

Opportunities

Oil Supply Situation

Oil Supply Security

National Government Initiatives

Regional Cooperation

Oil Stockpiling Initiatives

Strategic Location for Stockpiling

Initiatives


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PHILIPPINE DOWNSTREAM OILINDUSTRY


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RA 8479 Downstream Oil Industry Deregulation Act of

1998

Enhancement of competition

Fair prices

RA 8749 Philippine Clean Air Act of 1999

Cleaner fuel for cleaner environment

Standards for fuels

Regulatory Framework


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Market Liberalization

Tariff Treatment

Promotion of Fair Trade Practices Program to Encourage Entry of New Participants

Incentives

Promotion of Retail Competition Anti - Trust Safeguards

Regulatory Framework


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Any Person may engage in the following activities:

Refining

Transport

Bunkering

Fuels Bulk Marketing

Retail Marketing (gasoline stations)

LPG Bulk Marketing

LPG Refilling

LPG Cylinder Marketing (dealers/retail outlets)

Terminalling

Investment Opportunities


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ACTIVITY NO. OF PLAYERS

INVESTMENTS

(in Billion Peso)

FUEL BULK MARKETING 33 8.72

RETAIL MARKETING * 187 3.17

LPG MARKETING 10 4.99

TERMINALLING 7 0.55

BUNKERING 15 0.17

Total 252 17.607

New Players


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Aromatics 45% max Jan. 1, 2000Benzene 4% max Jan. 1, 2000

Unleaded Gasoline

Aromatics 35% max Jan. 1, 2003Benzene 2% max Jan. 1, 2003

AKI 7.5 min Jan. 1, 2001RVP 9 psi max Jan. 1, 2001

Automotive DieselSulfur 0.20% max Jan. 1, 2001Jan. 1, 2001Cetane No./Index 48 min Jan. 1, 2001Jan. 1, 2001

Sulfur 0.05% max Jan. 1, 2004

Industrial DieselSulfur 0.30% max Jan. 1, 2001Jan. 1, 2001

Clean Air Act Requirements


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OIL SUPPLY SITUATION


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Tank Truck

Tank Truck

Tankers/Barges

Refinery Storage

Retail Outlet

Refinery

Depot/Terminal

Crude

Imports

White Oil Pipeline Black Oil Pipeline

Product Direct

Imports

Product Exports

Industrial Consumer

Downstream Oil Activities


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Local refinery production

Petron and Shell

292 MBSD Product Importation

ASEAN, Middle East, Other Asia,

Australia, Crude Importation

ASEAN, Middle East, Russia

Refinery

via product tanker

via crude tanker

Supply Sources


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Iran

24.0%

Malaysia

5.1%

Qatar

4.6%

Yemen

2.6%Russia

1.4%Indonesia

1.1%

Phils.

0.2%

UAE

15.3%

S. Arabia44.4%

CRUDE IMPORTS

91,471 MB

S. Korea

16.4%

Singapore

27.0%India

0.5%

S. Arabia

3.9%

Kuwait0.2%

Taiwan

13.4%

Ukraine

0.7%

UAE

0.7%

Phil.**

14.3%

Iran

0.7%

Indonesia

2.8%

China

11.0%

Thailand

2.8%

Malaysia

7.3%

Japan

1.3%

Australia

0.5%

PRODUCT IMPORTS 37,045 MB** Philippines share from freeport (Subic), Processing Zone (SGEI)

Oil Imports ( 2003)


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0

50

100

150

200

250

300

350400

450

500

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

MBCD

Petroleum Supply / Demand Profile


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0

20

40

60

80

100

120

140

1998 1999 2000 2001 2002 2003

Demand % of Imports

Year Refinery Imports TOTAL (MB) to Demand

2003 28,731 13,919 42,650 42,517 32.74

2002 29,758 14,049 43,807 43,933 31.98

2001 33,872 8,986 42,858 43,119 20.84

2000 34,942 7,426 42,368 42,014 17.671999 36,510 4,404 40,914 42,111 10.46

1998 36,960 7,113 44,073 42,993 16.54

Supply (MB)


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0

10

20

30

40

50

60

70

80

1998 1999 2000 2001 2002 2003

Demand % of Imports

Year Refinery Imports TOTAL (MB) to Demand

2003 15,727 8,841 24,568 24,574 35.98

2002 16,736 6,418 23,155 24,102 26.63

2001 17,733 5,231 22,964 23,095 22.65

2000 17,306 5,084 22,390 22,825 22.271999 20,298 2,127 22,425 23,333 9.12

1998 19,063 3,799 22,862 22,641 16.78

Supply (MB)


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0

10

20

30

40

50

60

70

1999 2000 2001 2002 2003

Mar

June

Sept

Dec

Ave.

1999 Ave. (51 Days) 2000 Ave. (52 Days)

NO.

OF

DAYS

2001 Ave. (61 Days) 2002 Ave.(56 Days) 2003 Ave.(60 Days)

Petroleum Inventory, Jan. 99 Sept. 03


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REGION I

REGION I I I

REGION I I

REGION V

Lu

zon

481 M B

REGION I

5 Depots

10 Depots

REGION I I I4,249 M B

2 I/E Term inal

(Subic & C lark )

1,85124 Depot

N C RM B

262 Depot

A R M MM B

115

REGION I I

M B1 Depot

C A R0.5 M B1

Depot

923

Depots

REGION VM B

186

6Depots

REGION VI I I

M B

184REGION XI I

M B4 Depots

L u z o nL u z o n

M i n d a n a oM i n d a n a o

(CARAGA)68

271 M B7

Depots

47612 Depots

REGION X IM B

REGION X

REGION XII IM B

3 Depots

540

REGION VI IM B

15Depots

588

11Depots

REGION V I

M B

5,426

1 I/E Term inal

REGION IVM B

11 Depots

(SGEI)

1 Ex-Refinery

1364 Depots

M B

REGION IX

V i s a y a sV i s a y a s

REGION I

REGION I I I

REGION I I

REGION V

Lu

zon

481 M B

REGION I

5 Depots

481 M B

REGION I

5 Depots

10 Depots


2 I/E Term inal

(Subic & C lark )

10 Depots


2 I/E Term inal

(Subic & C lark )

1,85124 Depot

N C RM B1,851

24 Depot

N C RM B

262 Depot

A R M MM B26

2 Depot

A R M MM B

115

REGION I I

M B1 Depot115

REGION I I

M B1 Depot

C A R0.5 M B1

Depot

923

Depots

REGION VM B

186

6Depots

REGION VI I I

M B

C A R0.5 M B1

Depot

923

Depots

REGION VM B

186

6Depots

REGION VI I I

M B

923

Depots

REGION VM B

186

6Depots

REGION VI I I

M B186

6Depots

REGION VI I I

M B

184REGION XI I

M B4 Depots

184REGION XI I

M B4 Depots

L u z o nL u z o n

M i n d a n a oM i n d a n a o

(CARAGA)68

271 M B7

Depots

47612 Depots

REGION X IM B

REGION X

REGION XII IM B

3 Depots

(CARAGA)68

271 M B7

Depots

47612 Depots

REGION X IM B

REGION X

271 M B7

Depots

47612 Depots

REGION X IM B476

12 Depots

REGION X IM B

REGION X

REGION XII IM B

3 Depots

540

REGION VI IM B

15Depots

588

11Depots

REGION V I

M B

5,426

1 I/E Term inal

REGION IVM B

11 Depots

(SGEI)

1 Ex-Refinery

540

REGION VI IM B

15Depots

588

11Depots

REGION V I

M B

5,426

1 I/E Term inal

REGION IVM B

11 Depots

(SGEI)

1 Ex-Refinery

588

11Depots

REGION V I

M B

5,426

1 I/E Term inal

REGION IVM B

11 Depots

(SGEI)

1 Ex-Refinery

5,426

1 I/E Term inal

REGION IVM B

11 Depots

(SGEI)

1 Ex-Refinery

1364 Depots

M B

REGION IX136

4 DepotsM B

REGION IX

V i s a y a sV i s a y a s


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OIL SUPPLY SECURITY


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National Energy Contingency Plan

Petrons Partnership with Saudi Aramco

Fuel Quality Harmonization Supply Source Diversification

Alternative Fuels Program

Government Initiatives


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Memorandum of Understanding (MOU) on Cooperation in Oil

& Gas Activities with Thai Ministry of Energy

MOU between the Philippine National Oil Company and PTT

Public Company Limited on Sharing of Oil Storage Facilities

through the Establishment of an ASEAN Petroleum Hub

Regional Cooperation


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OIL STOCKPILING INITIATIVES


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REGION III (4,249 MB)10 Depots

2 I/E Terminal(Subic & Clark)

Lu

zon

V i s a y a s

M i n d a n a o

REGION XIII (CARAGA)(68 MB) 3 Depots (Active)(Nonoc, Surigao)980.000MB (Inactive)

TOTAL COUNTRY STORAGE:

Depot = 14,638 MB

I/E Terminals = 3,666 MB

Refinery = 15,918 MB



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ZAMBALESZAMBALESZAMBALESZAMBALESZAMBALESZAMBALESZAMBALESZAMBALESZAMBALES

TARLACTARLACTARLACTARLACTARLACTARLACTARLACTARLACTARLAC

NUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJANUEVA ECIJA

BULACANBULACANBULACANBULACANBULACANBULACANBULACANBULACANBULACAN

BATAANBATAANBATAANBATAANBATAANBATAANBATAANBATAANBATAAN

PAMPANGAPAMPANGAPAMPANGAPAMPANGAPAMPANGAPAMPANGAPAMPANGAPAMPANGAPAMPANGA

PALAYANPALAYANPALAYANPALAYANPALAYANPALAYANPALAYANPALAYANPALAYAN

TARLACTARLACTARLACTARLAC

MALOLOS

SAN FERNANDO

BALANGABALANGABALANGABALANGABALANGABALANGABALANGABALANGABALANGA

IBAIBAIBAIBAIBAIBAIBAIBAIBA

MASINLOC

ManilaBay

LIMAY

MARIVELES

MARILAO

OLONGAPOSUBIC

ANGELES CITY

GERONA

CLARK

REGION 3CENTRAL LUZON

TOTAL REGION STORAGE:Depot = 4,249.1 MB

I/E Term. = 2,686.0 MB

Refinery = 10,399.8 MB



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SURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAODEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SUR

SURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAODEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTE

AGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTEDEL NORTE

AGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANAGUSANDEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SURDEL SUR

TANDAGTANDAGTANDAGTANDAGTANDAGTANDAGTANDAGTANDAGTANDAG

SURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOSURIGAOCITYCITYCITYCITYCITYCITYCITYCITYCITY

PROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDADPROSPERIDAD

SIARGAOSIARGAOSIARGAOSIARGAOSIARGAOSIARGAOSIARGAOSIARGAOSIARGAOISLANDISLANDISLANDISLANDISLANDISLANDISLANDISLANDISLAND

DINAGATDINAGATISLANDISLANDISLAND

NASIPIT

CABADBARAN

Butuan

Nonoc island

DINAGATDINAGATDINAGATDINAGATDINAGAT


REGION 13CARAGA

TOTAL REGION STORAGE:

Depot = 68.8 MB

I/E Term. = 980.0 MB


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Joint Cooperation Committee (JCC) with Thailand

Oil & Gas Exploration, Development, Production, Distribution &

Utilization of Facilities

Development of Potential Synergy & Enhance Opportunities ofUtilization of Existing Oil Related Facilities

Research & Development on Technological Enhancement &

Improvement of Alternative Fuels

Joint Study in Other Oil and Gas Related Areas of the Petroleum

Business

Bilateral Initiatives


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WAY FORWARD


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THANK YOU!THANK YOU!

www.doe.gov.ph

philippine strategy on oil security 2003

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