MANILA, Philippines — A former energy undersecretary and head of the Philippine National Oil Co. (PNOC) had backed a bid to sell half of the government’s 10 percent stake in the Malampaya gas-to-power project to raise money for loan repayment.
In an online forum, Eduardo Mañalac said he was just implementing a directive from Malacanang and the Department of Energy (DOE) to sell a five percent stake of PNOC-Exploration Corp. in the Malampaya project to a South Korean firm in 2005.
But Mañalac said the sale was not consummated when the National Economic Development Authority (NEDA) opposed the proposal.
The Malampaya gas field is an essential asset for the Philippines and has been the primary source of feedstock for three power plants – Santa Rita, San Lorenzo and Ilijan – which have a combined capacity of 3,200 megawatts. Malampaya powers around 20 percent of Luzon’s electricity requirements.
From its inception in 2001 through early 2020, the Malampaya gas project generated over $10 billion in revenues for the Philippine government.
It also reduces oil imports by more than 800,000 barrels per year, which saves the country an estimated $2.5 billion in annual import costs.