THE consortium that operates the Malampaya deep water-to-gas power project will start this week the bidding process for its unused natural gas or banked gas, with a prequalification conference for interested bidders to be held today, April 16.
Among the members of the consortium are Shell Philippines Exploration B.V (SPEX), Chevron Malampaya LLC, PNOC Exploration Corp. and Philippine National Oil Company (PNOC).
Energy Undersecretary Zenaida Monsada said the operators have already started the process of jointly tendering their respective gas volume entitlements under Service Contract 38.
The quantity of gas available is up to 227.995 petajoules and average daily quantity of up to 78.1 terajoules per day.
According to Monsada, the banked gas is available for delivery starting January 1, 2016 and up to February 23, 2024.
Interested parties should submit a full bid proposal and pay a non-refundable bid documents fee of P2 million.
Energy Secretary Carlos Jericho Petilla earlier said that PNOC and SPEX were studying a pricing scheme for the sale of the banked gas.
Petilla had earlier proposed that the gas be sold to power generation companies to augment power supply.
He also proposed that interested buyers of the banked gas establish a 400-MW plant to help meet Luzon’s power requirements during peak hours.
SPEX, as a contractor of Malampaya, has its own banked gas. The PNOC’s banked gas is stored in the reservoir of the Malampaya project. The government paid for the gas and reserved it for future use.
Petilla said the banked gas would be used for additional capacity and not for existing power generation capacity.