PNOC selling banked gas of Malampaya – About Your Online Magazine

State-owned Philippine National Oil Co. signed an agreement on the possible sale of the gas deposited at Malampaya to Power Sector Assets and Liability Management Corp.

Accumulated gas is the accumulated unused gas from the Ilijan plant in the amount of 108.6 petajoules as a result of the underutilization of the plant’s take or pay quantity from 2002 to 2007.

The stored gas was originally paid for by the government of the Philippines through the government’s net participation in assisting National Power Corp., then owner of the Ilijan plant in Batangas, to satisfy the take or pay provisions of a purchase and sale agreement for gas with the consortium 38 service contract.

PNOC President Reuben Lista and PSALM President Irene Joy Besido-Garcia signed a memorandum of understanding and non-disclosure agreement on June 7, 2021 for the possible sale and purchase of the deposited gas.

The PNOC purchased from the Department of Energy the rights, benefits and rights to the deposited gas.

The remaining volume of stored gas is equivalent to 97.67 PK after PSALM withdrew 4.61 PJ in 2013 for the Ilijan plant. Another installment equivalent to 6,324 PJ was contracted with Pilipinas Shell Petroleum Corp. in 2016 for the Tabangao refinery.

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Paula Fonseca