DOE orders study on remaining gas supply in Malampaya

MANILA, Philippines — The Department of Energy (DOE) has ordered a technical study to determine the remaining gas supply in the Malampaya deep water gas-to-power project as it explores various options for the gas field after its contract expires.

Energy Secretary Alfonso Cusi said the agency is studying possible scenarios for the Malampaya project offshore Palawan.

Service Contract (SC) 38, the license that allows the exploration of the Malampaya gas field in northwest Palawan, will expire in 2024 but this can be applied for extension with the Department of Energy.

Shell Philippines Exploration B.V. (SPEX), a local unit of energy giant Royal Dutch Shell, leads the Malampaya consortium with 45 percent, Chevron Malampaya LLC (45 percent) and PNOC Exploration Corp. (10 percent).

The SC 38 consortium previously expressed its interest to extend the license to explore for oil and gas in northwest Palawan until 2039 but was stalled due to the tax issue amounting to billions of pesos slapped by the Commission on Audit

Operating since 2001, the Malampaya gas project supplies fuel to around 40 percent of gas-fired plants in Luzon namely the Ilijan, Sta. Rita plant, San Lorenzo, San Gabriel and Avion plants—which supply 3,211 MW to the Luzon grid.

The DOE earlier said PNOC-EC was looking at the possibility of continuing to run the Malampaya deep water gas-to-power project without its existing partners.