MST Chatter — Who gets Malampaya’s banked gas?

by Alena Mae S. Flores – January 03, 2016 at 11:20 pm

from Manila Standard

The banked gas at the Malampaya natural gas field northwest off Palawan has been partially awarded, according to a government official.

“I think there was a partial award already,” Energy Department director Melita Obillo said, when asked about the banked gas bidding update.

Banked gas, which refers to the stockpile of Malampaya reserves owned by Philippine National Oil Co. and the consortium led by Shell Philippines Exploration Corp., is reportedly enough to fuel a 400-megawatt natural gas power plant. The government is conducting a joint tender for the banked gas.

Obillo did not comment on who won the fuel supply contract or on whether the gas awarded was the share of PNOC or the Malampaya consortium led by Spex,

The invitation to prospective investors for the banked gas earlier stated that Spex, Chevron Malampaya LLC, PNOC Exploration Corp. and PNOC would jointly tender their respective gas volume entitlements under service contract 38.

The total quantity of gas available is up to 227.995 petajoules, with average daily quantity of up to 78.1 terajoules. It will be available for delivery as early as Jan. 1, 2016 and up to Feb. 23, 2024.

The banked gas is estimated to fuel a natural gas plant with a capacity of 400 megawatts. Spex officials earlier said a “significant” number of power companies were interested in the banked gas. The transaction is expected to cost about $1 billion.

Spex, the operator of SC 38 or the Malamapaya service contract, holds a 45-percent stake. Other consortium members are Chevron Malampaya LLC with 45 percent and PNOC Exploration with 10 percent.

The government also wants to complete the banked gas sale soon to help secure the country’s long-term power requirements. “Let’s put it this way, the Malampaya phase 3 is now commissioned and ready to go. It is the desire of government to try to get the power out asap. There are people who have put power plants on the ground as we speak so they are looking for gas,” Spex managing director Sebastian Quiniones said earlier.

He said Spex was helping PNOC monetize the banked gas.