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Final GPDP Completion Report GAS POLICY DEVELOPMENT PROJECT Completion Report SEPTEMBER 2018-JANUARY 2020 This document is made possible by the generous support of the American people through the United States Department of State-Bureau of Energy Resources (USDS-ENR). The contents are the responsibility of the GPDP Team and do not necessarily reflect the views of the USDS-ENR, the United States Government or the UPSCRFI. *A supplementary report covering the details of activities for February to June 2020 will be submitted to USDS. ABOUT GAS POLICY GPDP Management and Staff DEVELOPMENT PROJECT Ramon Clarete Project Director The Gas Policy Development Project (GPDP) aims to provide technical assistance to the Philippine Department Dennis Mapa Project Director for of Energy (DOE) in implementing the Philippine Finance and Administration Downstream Natural Gas Regulation (PDNGR) Department Majah-Leah Ravago Project Director for Circular (DC) 2017-11-0012. The Project includes capacity- Research building activities, provision of technical advice and Belyn Rafael Deputy Project Director guidance to implement the PDNGR, conduct of research J. Kathleen Magadia Research and on natural gas industry in the Philippines, and assistance Communications Specialist in the improvement of PDNGR-related policies. Jennylene Layaoen Capacity Building Specialist Renzi Frias Project Technical Officer Specifically, the Project aims to: Maribel Testa Finance and Administration Coordinator 1. Strengthen the capacity to implement the Circular with particular focus on best practices and lessons learned to Alfred Recio Accountant evaluate natural gas-related project applications; Helen Santos Administrative Officer Duchees Alvarez Project Assistant 2. Recommend technical, economic, and financial Raul Fabella Research Fellow guidelines, criteria, and systems that could be used as a Karl Jandoc Research Fellow reference to evaluate project proposals for LNG facilities; 3. Extend technical support to the DOE on the review of Department of Energy – Oil Industry proposals, following guidelines developed under number 2 above; Management Bureau - Natural Gas Management Division 4. Provide an improved understanding of the LNG Donato Marcos Undersecretary industry through research on key topics; and Leonido Pulido III Assistant Secretary Rino Abad Director 5. Provide policy recommendations on the PDNGR, Rodela Romero Assistant Director Downstream Natural Gas Industry Act, and related bills Ma. Laura Saguin Chief Science Research such as the Senate Bill 172 and House Bills 1193 and 1266 Specialist (Establishment of the Philippine Energy Research and Don Honor Jacob Supervising Science Policy Institute). Research Specialist Charlene Dacumos Senior Science Research Specialist Ronald Dee Senior Science Research Specialist Jessol Salvo Senior Science Research Specialist Rea Cortezano Senior Science Research Specialist Erwin Domingo Science Research Specialist II April Joy Sibal Science Research Specialist II Anita Capate Science Research Specialist II Pretzel Advincula Administrative Aide VI Alicia Reyes Executive Technical Assistant, Top, L-R: Ronald Dee, Erwin Domingo, Don Honor Jacob, Ramon Clarete, Rino Abad, Jessol Salvo, Renzi Frias Office of the Undersecretary Bottom, L-R: Alicia Reyes, Grace Merrera, Rodela Romero, Ma. Laura Saguin, Charlene Dacumos, Belyn Rafael, April Joy Sibal, J.Kathleen Magadia, Jennylene Layaoen Athena Grace Merrera Executive Assistant, Office of the Assistant Secretary 2 GAS POLICY DEVELOPMENT PROJECT Completion Report SEPTEMBER 2018-JANUARY 2020 This document is made possible by the generous support of the American people through the United States Department of State-Bureau of Energy Resources (USDS-ENR). The contents are the responsibility of the GPDP Team and do not necessarily reflect the views of the USDS-ENR, the United States Government or the UPSCRFI. *A supplementary report covering the details of activities for February to June 2020 will be submitted to USDS. 3 GPDP and DOE Implementing Team 4 Photo courtesy of First Gen Corporation Contents 1 EXECUTIVE SUMMARY 9 2 HIGHLIGHTS OF ACCOMPLISHMENTS 12 A. Technical Assistance to Implementation of the Philippine Downstream Natural Gas Regulation (PDNGR) 12 1. Organization of the Special Evaluation Committee (SEC) 12 2. Verification of Permit, Licenses, and Requirements 13 3. Investors’ Guide and Evaluator’s Guide 13 B. Capacity Development 14 1. GPDP Launch and Inception Workshop 15 2. Training Activities 15 3. Workshops for the Philippine Inter-Agency Health, Safety, Security and Environment Inspection and Monitoring Team (PIA HSSE IMT) 17 4. Site Visits and Policy Exchange 18 5. Co-organization of Relevant Capacity Development Activities 19 6. Participation in the JOGMEC-Organized Training 20 C. Research 20 1. Technical Report on Primary Survey on Market Profiling 20 2. Research Study 20 D. Policy Development and Advisory 21 1. Downstream Natural Gas Industry Act 21 2. Philippine Energy Research and Policy Institute Bill 22 3. Input to Strengthening the Philippine Downstream Natural Gas Industry Regulation 22 3 ANNEXES (Available Online) Annex A. Training on Basic LNG Annex B. Financial, Economic, and Legal Aspects of LNG Projects Annex C. Technical Training on LNG HSSE Management Annex D. Training on Technical and HSSE Document Requirements for Notice to Proceed Permits of Liquefied Natural Gas Project Proposals Annex E. Site Visits Annex F. Research Study 5 LIST OF ACRONYMS CLDP Commercial Law Development Program CREC Centralized Review and Evaluation Committee DC Department Circular DENR-EMB Department of Environment and Natural Resources-Environmental Management Bureau DILG-BFP Department of Interior and Local Government-Bureau of Fire Protection DOE Department of Energy DOE-CREC Department of Energy-Centralized Review and Evaluation Committee DOE-OIMB Department of Energy-Oil Industry Management Bureau DOF-BOC Department of Finance-Bureau of Customs DOH-BOQ Department of Health-Bureau of Quarantine DOLE-BWC Department of Labor and Employment-Bureau of Working Conditions EMA Energy Market Authority GPDP Gas Policy Development Project HSSE Health, Safety, Security, and Environment JOGMEC Japan Oil, Gas, and Metals National Corporation LNG Liquefied Natural Gas MARINA Maritime Industry Authority NTP Notice to Proceed PCERM Permit to Construct, Expand, Rehabilitate, and Modify PCG Philippine Coast Guard PDNGR Philippine Downstream Natural Gas Regulation PERPI Philippine Energy Research and Policy Institute PEZA Philippine Economic Zone Authority PHMSA Pipeline and Hazardous Materials Safety Administration PIA HSSE IMT Philippine Interagency Health, Safety, Security, and Environment Inspection and Monitoring Team PNOC Philippine National Oil Company POM Permit to Operate and Maintain PPA Philippine Ports Authority SEC Special Evaluation Committee UP NEC UP National Engineering Center UPSCRFI UP Statistical Center Research Foundation, Inc. UREO University Research Ethics Office USDS United States Department of State 6 Message from the GPDP Project Director Launched in December 2018, the Gas Policy Development Project (GPDP) provided the DOE with technical assistance in the implementation of the Philippine Downstream Natural Gas Regulation (PDNGR) Department Circular (DC) 2017-11-0012. I am pleased to share with you the GPDP’s completion report. It describes the Project’s accomplishments in its 16-month run. The GPDP strived to provide not only the DOE but also other partner government agencies necessary assistance to facilitate the development of the LNG sector. However, GPDP has only scratched the surface and more still needs to be done to put a functioning LNG regulatory system in place. It is our hope that the Project’s efforts and outputs will serve their purposes and pave the way to the creation of a thriving and efficient LNG industry. Our sincerest appreciation to our key partners: the Department of Energy (DOE), especially to the Oil Industry Management Bureau-Natural Gas Management Division; agencies part of the Philippine Interagency Health, Safety, Security, and Environment Inspection and Monitoring Team (PIA HSSE IMT); and the Congress’ Committees on Energy, for being gracious and valuable collaborators in all the Project’s endeavors. GPDP would not have been possible without the funding and technical support from the U.S. Department of State’s Bureau of Energy Resources under its Asia EDGE program. Through the State Department, the Project was fortunate to have partnered with the U.S. Department of Commerce’s Commercial Law Development Program (CLDP). CLDP provided GPDP with the LNG project experts it needed. Other experienced LNG resource speakers, both from the private and government sectors of countries with well-developed LNG industries, such as Japan and the United States, eagerly shared their invaluable time and expertise in the conduct of the Project’s trainings and workshops. Through the DOE, the Project was able to successfully organize study tours and policy exchanges in LNG countries in the region, particularly Singapore and Indonesia. To the DOE, our donor, and all our partners, we in GPDP extend our gratitude. I want to thank the GPDP team—proof that when it comes to efficiency, quality trumps quantity. This small staff of eight members adapted to any task presented to them and displayed unwavering commitment in delivering each of these undertakings. I thank the UP Statistical Center Research Foundation, Inc. (UPSCRFI) for giving us the opportunity to serve our country by contributing
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