Pilipinas Shell Petroleum Corp. (Pilipinas Shell) is poised to export 20,000 to 25,000 barrels of condensate per day from the Malampaya deepwater gas fields in offshore Palawan.
"We expect to start selling our condensate sometime in the last quarter of this year or the first quarter of the year 2001," said Oscar Reyes, president and chief executive officer of Pilipinas Shell. It is the sister company of Shell Philippines Exploration BV, the company exploring and developing the Malampaya fields.
The price of the condensate will depend on the prevailing prices when the product enters the market. Just like crude oil and its refined petroleum products, prices are constantly moving.
The principal market for Malampaya's condensate is the Asian market especially the advanced countries of Japan, Singapore and Hong Kong.
The offshore Palawan site has a condensate reserve estimated at 85 million barrels and 2.5 trillion cubic feet of natural gas. The gas reserves are enough to power a 3,000-megawatt (MW) combined-cycle power plant per year for 20 years.
The development of the Malampaya gas fields is estimated to cost at least $4.5 billion.
The main user of the natural gas reserves will be three power plants all located in Batangas. One is the 1,200-MW gas-fired power facility in Ilijan, Batangas operated by the Kepco Ilijan Power Corp. (Keilco), the 1,000-MW power plant in Sta. Rita, Batangas, and the 500-MW gas facility in San Lorenzo, both operated by the First Gas Power Corp.