Consortium asked to disclose Malampaya reserves level

The Department of Energy (DOE) is asking the Malampaya consortium to inform the DOE of the remaining reserves in the $4.5-billion deep water to gas power project in Northwest Palawan.

"We want them to tell us how much natural gas is left in Malampaya.  Is it still good for 500 megawatt or 1,000 MW," Energy Undersecretary Guillermo Balce told reporters over the weekend.

Balce said this information is pertinent to the government’s energy development planning for the near term.

"We need to know if they would still increase the capacity further or if there is still room for further expansion," he said.

Balce noted that there are areas in the Northwest Palawan that has been left untapped. "There is Camago, Malampaya and San Martin.  We want them to definitely tell us if they would increase it (natural gas extraction) further," he said.

According to Balce, the Malampaya consortium, led by Shell Petroleum Exploration B.V., has informed them that it would start marketing the rest of its natural gas production by first week of January next year.

It would be recalled that Malampaya consortium has announced that it had just completed the maintenance of its platform.

The commercialization of natural gas in Malampaya came in the late 2001 with the entry of additional 3,000 MW into the grid using the produce from the $4.5 billion Malampaya deep water to gas power project with proven reserves of 3.8 trillion cubic feet (Tcf).

In the recent years, efforts to expand the use of natural gas in both power generation and transport sector have intensified. 

Pilipinas Shell, an affiliate of SPEX, has committed to put up a mother-daughter compressed natural gas (CNG) station by June 2006.  It is expected to source its natural gas need from Malampaya.

First Gen Corp., owner of two natural gas power plants and has a pending plan to put up one more gas-fired power facility, has expressed concern about the gas supply in Malampaya.

First Gen vice chairman Peter Garrucho Jr. said before they proceed with the construction of the proposed 550-MW San Gabriel power plant, they need to resolve first issue on the gas supply from Malampaya.

"With respect to the prospects in San Gabriel, (they) are still in an unsettled phase mainly because we still need some clarity on the gas supply,"

"As you all know, the gas suppliers have just finished their maintenance program. And now they will probably have more time to look at new business. We hope to reengage in discussions with them early next year on how they will want to sell the additional capacity," he added.