STATE-OWNED Philippine National Oil Co. (PNOC) and the International Finance Corporation (IFC) are close to signing a deal covering the utilization of unused natural gas from the Malampaya field.
The agreement entails the provision of assistance for a “legally, technically and financially feasible” business arrangement for the first stage of a floating storage and regasification unit using gas-fired power plant (FSRU-PP) technology.
Adopting the technology was an option considered by PNOC for the unused Malampaya gas. The facility could be located off Tabangao where the onshore gas processing (OGP) unit of the Malampaya gas facility is located.
PNOC submitted documents to House Minority Leader and Quezon 3rd District Rep. Danilo Suarez last week that detailed two options for the banked gas: trading overseas or extracting and selling as electricity in the local market.
With the depletion of the Malampaya gas field imminent, “it becomes imperative that PNOC extract and fully recover the remaining purchase cost as well as optimize its potential value at the earliest time possible which should be before the end of 2024,” it said.
Although the entire project centers on utilizing PNOC’s unused gas for building an LNG hub, it also takes into account the social benefits to the public.
PNOC, created by the virtue of Presidential Decree No. 334 on November 9, 1973, is responsible for ensuring a stable supply of petroleum products to sustain economy growth and social well-being of the nation.