Chevron eyes excess Malampaya output

MANILA, Philippines - The local unit of US-based energy giant Chevron is planning to bid for the excess output of the Malampaya deep water gas-to-power project in Palawan to fuel a proposed 300-megawatt natural gas project at its 40-hectare Batangas terminal.

“It’s one of the options that we are looking at. We will bid for the excess gas,” said Toby Nebrida, communications manager of Chevron Philippines Inc.

The Malampaya consortium of which Chevron is a part of, is selling up to 500 MW of the excess capacity in its natural gas project in northwest Palawan.

Nebrida said the construction of a power plant is among the business ventures being explored by the company after it was granted another 25-year lease for its Batangas terminal by the National Development Corp. (NDC).

The Chevron Group’s power assets, which include those in refinery and upstream operations, generate more than 5,500 MW of electricity. Chevron has interests in 13 joint venture power facilities in the United States and Asia. Its combined-cycle and natural gas-fired co-generation plants use waste heat to produce additional electricity and heat for industrial uses. A number of its facilities provide steam for the production of heavy oil.

The company is also the world’s leading producer of geothermal energy, with major operations in Indonesia and the Philippines. Chevron operates the 259-MWDarajat and 377-MWSalak geothermal fields in West Java, Indonesia. In the Philippines, it manages the combined generating capacity of the Tiwi and Mak-Ban geothermal plants.

Chevron is also exploring alternative and renewable energy technologies.

Natural gas is a growing segment of Chevron’s energy portfolio. Its natural gas resources span six continents, including significant holdings in Africa, Australia, Southeast Asia, the Caspian Region, Latin America and North America. Chevron has a net production of more than five billion cubic feet of natural gas per day including equity shares in affiliates, which is expected to substantially increase over the next decade.

In the regions where Chevron has significant gas resources, it is pursuing projects to build liquefaction facilities that will cool natural gas into a liquid so it can be shipped safely in specialized tankers to growing markets. 

It is a longtime participant in Australia’s North West Shelf Venture, which ships LNG to customers in Japan, South Korea and China. Chevron also supplies natural gas to LNG processing facilities in Point Fortin, Trinidad, and in Bontang, Indonesia.

On top of the power plant project, the Batangas property will also be used for storage and possible expansion of current oil warehouse.

According to Nebrida, the group is currently assessing its operations through a feasibility study. He said the study also involves the $20 million retooling of its facilities in the Philippines for ethanol blend compliance.

“There are challenges along the way for the retooling and it involves considerable amount of investment but our company will comply with the law,” he said.