MANILA, Philippines – The Malampaya consortium led by Shell Philippines Exploration BV (SPEX) has been informed it can still draw gas beyond the expected life term of the gas field.
Gas from within is expected to be fully consumed by 2024.
Energy Secretary Carlos Jericho Petilla said that based on latest studies, natural gas from the Malampaya gas field will not run out until 2029 to 2030.
“There’s a study that it will last an extra 5 years if we run it as base load. It can last after 2030 if we use it as mid-merit,” Petilla said.
Mid-merit plants supply the gap between base load and peaking plants, which operate during peak hours.
The Malampaya gas field fuels 3 power plants in Batangas with a capacity of 2,700 megawatts (MW). It also fuels around 40% to 50% of Luzon’s power requirements.
The 3 plants are currently running as base load or 24 hours a day, 7 days a week, except during forced outages and maintenance shutdown.
The Malampaya gas field has proven reserves of 2.7 trillion cubic feet (TCF) to 3.2 TCF, of which more than one TCF was already consumed.
SPEX Managing Director Sebastian Quinones previously said the government will bid out unused gas from the Malampaya gas field within the year.
Quinones added the banked gas totaling 300 megawatts (MW) is now being readied for bidding.
Petilla previously said that the gas would be sold to power generation companies to augment power supply and avoid electricity shortage by 2015, when there would be tightness in supply as the economy grows. (READ: When Malampaya runs out, what protection do consumers have?)
He said it would be used for additional capacity and not for existing power generation capacity.
The Malampaya facility is scheduled to go offline from March 15 to April 14, 2015 to commence the installation of a platform. The aim is to maintain the fuel supply to power plants providing half of Luzon’s power needs.
SPEX as lead operator owns a 45% stake. Chevron Malampaya LLC has a 45% stake and PNOC Exploration Corp holds the remaining 10%. – Rappler.com