Philippine National Oil Co.-Exploration Corp. (PNOC-EC) is studying the viability of taking over the Malampaya gas-to-power project when its present contract expires in 2024, an Energy official said on Monday.
Leonido J. Pulido III, assistant secretary at the Department of Energy (DoE), told reporters, that a study that PNOC-EC targets to complete this year seeks to answer two main technical issues relating to the project.
“The first part is, is it commercially viable? Is it more beneficial for the national government for PNOC-EC to continue the concession agreement?” he said.
Shell Philippines Exploration B.V. (SPEx). and consortium partners Chevron Malampaya LLC and PNOC-EC operate the Malampaya natural gas platform, which fuels several power plants in Batangas.
The gas-to-power project also supplies Pilipinas Shell Petroleum Corp.’s refinery and compressed natural gas refilling station. It delivers about a fifth of the country’s electricity requirements.
“The second part is, will it be commercially viable, as an additional source — it amounts to 1,000 megawatts (MW) worth of natural gas to the east of SC 38 — whether PNOC-EC will actually drill and extract that gas,” Mr. Pulido said.
However, Senator Sherwin T. Gatchalian, chairman of the Senate’s energy committee, expressed reservations about the government taking over the project, citing previous experiences in managing the metrorail and other public services. — Victor Saulon

RELATED ARTICLESMORE FROM AUTHOR