DOE chief optimistic on reported natural gas in Recto Bank

MANILA, Philippines - The Department of Energy (DOE) is optimistic that Recto Bank (Reed Bank) may have reserves of natural gas equal to if not greater than that of Malampaya gas fields in offshore Palawan.

The Malampaya natural gas fields have the capacity to provide Luzon with energy of up to 2,750 megawatts (MW) and roughly 40 percent of power generated by Luzon-based power plants.

Energy Undersecretary Jose Layug said that initial indications are that Recto Bank “will be bigger than Malampaya.”

The full report will be made public in the latter part of the week, he added.

What makes the “world-class discovery” so important is that the Malampaya natural gas fields will be dried out by 2024.

“We in the Philippines are told by experts that we may actually be very blessed with natgas (natural gas). This is precisely why the DOE has launched an energy contracting round wherein we identified 15 new areas that we’re offering to international companies to look for gas,” Energy Secretary Jose Rene Almendras said in an interview with ANC.

There is reportedly a big demand for natural gas in Asia. Japan is one of the biggest buyers of natural gas, which is being presented as an ideal alternative to oil because it is clean and environment friendly.

Forum Energy Plc, holder of the Service Contract 72 license, confirmed yesterday the findings that it might be better than the expected potential of the service area.

Forum Energy confirmed the final report on the interpretation of new 3D and 20 data acquired is scheduled to be presented later this week.

Forum Energy is the service contract holder but Philex Petroleum Corp. holds 64.45 percent of the contract holder. In turn, Philex Mining Corp. controls 64.79 percent of Philex Petroleum.

Philex Mining Corp., controlled by businessman Manuel Pangilinan, is engaged in the exploration, development, and management of mineral and energy resources in the Philippines. – With Evelyn Macairan