PNOC, group plan to auction banked gas from Malampaya

by Lenie Lectura, 06 April 2015
from BusinessMirror

THE Malampaya consortium and the Philippine National Oil Co. (PNOC) have started the auction process for the stockpiled gas, or more known as banked gas, within the gas field.

The Malampaya consortium is led by Shell Exploration B.V., with a 45-percent stake; Chevron Malampaya Llc., 45-percent stake; and PNOC Exploration Corp., 10 percent.

Separately, state-owned PNOC also owns the banked gas stored in the Malampaya reservoir. It was contracted, paid for by the government and reserved for future use. The banked gas, however, has accumulated in the past several years.

The consortium and PNOC have decided to jointly sell the banked gas.

In an invitation for a prequalification conference, SPEX, Chevron and PNOC are commencing a process of jointly tendering their respective gas volume entitlements under Service Contract 38.

“The quantity of gas available is up to 227.995 petajoules and average daily quantity of up to 78.1 terajoules per day, available for delivery as early as January 1, 2016, and up to February 23, 2024,” the bid invite stated.

Energy Secretary Carlos Jericho L.  Petilla earlier said that unused gas in the Malampaya gas field could still produce as much as 400 megawatts  of power. Interested parties are invited to attend a pre-qualification conference on April 16. Those that will pass the prequalification process may submit a full bid proposal, subject to a nonrefundable bid document fee of P2 million.

The banked gas will be sold to power-generation companies.

The Department of Energy (DOE)  recently created the technical working group that will craft the guidelines for the sale or disposal of the banked gas of PNOC.

The technical working group is composed of representatives from the DOE, PNOC and PNOC Exploration Corp..

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