SPEX Updates on Next Phases of the Malampaya Gas Project

Shell Philippines Exploration BV (SPEX) disclosed Wednesday details for the next phases of the Malampaya Deepwater Gas-to-Power Project in service contract (SC) 38, located around 49.7 miles (80 kilometers) northwest of Palawan Island off the Philippines.

The latest development phases of the Malampaya gas development, known as Malampaya Phase 2 and 3 (MP2 and MP3), will see SPEX drilling two additional production wells (MP2) and installing a second platform to house additional compressors for depletion compression (MP3).

MP2 and MP3 aim to maintain the level of Malampaya gas production to fulfill commitments under existing gas sales agreements and ensure a steady supply of natural gas to power the Luzon electricity grid. The development of MP3 or Depletion Compression Platform (DCP) involves the installation of the new platform by 2015. First steel for the DCP was cut on Dec. 7, 2012 at the Keppel Subic Shipyard in Subic, Zambales, Philippines. 

“We proceed with the project’s next phases of development with the same standards of excellence and commitment to safety that we have lived by all these years, as we know the generations of Filipinos who benefit from Malampaya deserve nothing less,” SPEX's Managing Director Sebastian Quiniones Quiniones said in a company release.

Malampaya is one of the largest and most significant industrial endeavors in Philippine history, heralding the birth of the natural gas industry in the country. A joint undertaking between the Philippine national government and the private sector, the technologically innovative gas project is spearheaded by the DOE,

The Malampaya gas project in SC 38 was developed and operated by SPEX and the Chevron Malampaya LLC and the PNOC Exploration Corporation are the other joint venture partners.


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