Malampaya gas to last till 2030, says study

MANILA, Philippines - Natural gas from the Malampaya gas field is expected to last until 2029 to 2030, longer than the earlier projected depletion date of 2024, according to latest studies commissioned by the consortium behind the deep water to gas Malampaya gas field.

Thus, Energy Secretary Carlos Jericho Petilla said the Malampaya  gas field in northwest Palawan is likely to last a few more years but depending on the usage of the three power plants utilizing the gas field’s supply.

At present, the Malampaya gas field supplies power to three power plants in Batangas with a total capacity of 2,700 MW, accounting for 40 percent of supply in Luzon.

“There’s a study that it will last an extra five years if we run it as baseload. It can last after 2030 if we use it as mid-merit,” Petilla said.

Mid-merit plants are plants that supply power to address the gap between baseload and peaking plants which run during peak hours.

At present, the Malampaya consortium is embarking on a $1 billion project to draw more gas from the gas field and serve its supply commitment to the three power plants.

According to the consortium, the second phase of the Malampaya project entails the drilling and development of two additional wells at a cost of $250 million while the third phase involves the installation of a new platform where additional equipment and facilities will be housed by 2015 at a cost of $750 million.

The consortium is composed of Shell Philippines Exploration B.V., which is the operator with a 45 percent stake, Chevron Malampaya LLC with a 45 percent stake and PNOC Exploration Corp. with the remaining 10 percent.

According to data on the gas field, the Malampaya field has proven reserves of 2.7 trillion cubic feet to 3.2 TCF, of which more than 1 TCF has already been consumed.