PNOC selling unused Malampaya gas

By Jordeene Sheex Lagare – June 25, 2018
from The Manila Times

UNUSED gas from the Malampaya Deepwater Gas-to-Power plant in offshore Palawan province is now being auctioned off, the Philippine National Oil Co. (PNOC) said.

In a recent advisory, the state-run oil company invites interested parties to submit proposals until July 23 to buy 97.67 petajoules (PJ) of the facility’s banked gas.

Each proposal should state the offered price in US dollar per gigajoule, excluding taxes; volume in petajoules; schedule of withdrawal; and a description of how the gas will be used.

Companies with an “acceptable offer will be required to submit qualification documents to establish their legal, technical, and financial eligibility,” PNOC said.
The firm holds the right to accept any offer to buy the banked gas. It also has the discretion to halt, suspend, or cancel transactions at any time before the contract’s awarding.
PNOC originally planned to bundle its planned liquefied natural gas (LNG) project; monetize its unused Malampaya gas, which amounts to roughly $650 million (P2.93 billion); provide a 200-megawatt army reserve power plant; and provide current offtakers and prospective investors with a gas source.

But in documents submitted to House Minority Floor Leader Rep. Danilo Suarez last September, the company said it was considering two options in monetizing its banked gas: trade gas stocks overseas or extract and sell them domestically as electricity.

PNOC, however, noted that “international trading may be challenging, since the physical transport of gas is not viable, unless it is converted to a liquid state through liquefaction.”

In September 2009, PNOC acquired from the Department of Energy (DoE) all the rights, benefits, and entitlements of the banked gas, estimated at 108.6 PJ and valued at P14.4 billion.