Posted on July - 22 - 2011
Philippines says to sign S$1.8b natural gas project expansion
MANILA – THE Philippines said on Friday it expects to forge a deal with consortium partners next month to develop the US$1.5 billion (S$1.8 billion) second and third phases of the Malampaya natural gas project to increase production at the gas field south-west of the capital.
The government, through state-run PNOC-Exploration Corp (PNOC-EC) , holds a 10 per cent stake in the Malampaya project. The rest is owned equally by Shell Philippines Exploration B V, a unit of Royal Dutch Shell RDSa.L and Chevron Malampaya LLC, a unit of the US energy firm .
‘We have formed an inter-agency team to get the permits,’ Energy Secretary Jose Rene Almendras told reporters. ‘We are also asking PNOC-EC to get ready for its share of investments.’ He said the second phase of the project would likely begin early next year and was expected to be completed in four years.
Malampaya supplies gas to power plant operators First Gas Power Corp, a unit of First Gen Corp, and San Miguel Energy Corp, a unit of conglomerate San Miguel Corp .
The project currently supplies enough gas to generate up to 2,700 megawatts of power a day, providing more than 30 per cent of the power needs of the country’s main island of Luzon.
Energy department officials previously said the Malampaya consortium was planning to increase gas sales by enough to generate an additional 300 megawatts. The group has committed to supply gas to power producers for a period of more than 20 years.
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