PPDC nixes Malampaya as source of raw materials for naphtha plant

The PNOC-Petrochemical Development Corp. has dropped its plan to source 40 to 45 percent of its feedstock requirement for its naphtha cracker plant from Shell Petroleum Exploration B.V. (Spex)’s Deep Water to Gas power project in Northern Palawan.

"We are no longer considering the Malampaya condensate because the gas is too dry," Philippine National Oil Co. (PNOC) president Thelmo Y. Cunanan said. "PPDC is the petrochemical development arm of PNOC.

PNOC experts say that dry gas is difficult to liquefy and will limit their capability to extract condensate.

Based on its new plan, the development of PPDC’s naphtha cracker plant project will be divided into two phases, with the second phase or unit becoming a multi-feed plant. This means that it could be fed with either LNG, condensate and liquefied petroleum gas (LPG) not just naphtha.

Cunanan said they are now negotiating with Pertamina of Indonesia for a possible LNG supply agreement. Cunanan said the Pertamina’s technical working group (TWG) is now analyzing the composition of the PPDC’s cracker plant if ever it will consider using LNG as a feedstock.

The PNOC official said in case they will not be able to use up all the LNG supplied by Pertamina, they could sell it to other natural gas-fired plant.

He said there are some plants being eyed for conversion into gas-fired power plants like those of Limay, Malaya and Sucat.

The supposed deal with Spex should have brought savings for the company. Earlier PPDC president Jose Gangan said they could use the condensate from natural gas to be produced by Spex in Malampaya aside from the naphtha.

According to Gangan, the entry of Spex in the venture will enable the consortium to realize savings. Gangan explained that the expected savings would be possible because the consortium will be able to reduce its naphtha imports. The PPDC official said the condensate would replace some of the naphtha requirement of the cracker plant and would also be cheaper. Condensate is a cheap form of fuel to be extracted from the natural gas to be produced in the Malampaya field.

PPDC is eyeing at least 34-percent stake in the cracker project, to be constructed within its petrochemical park in Bataan. – Donnabelle Gatdula