Malampaya Comes Onstream Ahead of Schedule
Philippines' Malampaya gas field in Palawan started producing natural gas on Sep 27, four days ahead of schedule. The Shell consortium successfully delivered Malampaya natural gas to one of the three combined cycle power plants in Batangas on Thursday, ahead of its scheduled October 1st delivery. A 504-km pipeline connects the Malampaya gas field with three electricity generating plants in Luzon.
The pipeline consortium will initially sell gas to three new power stations, she said. The government's expected $9-bil to $10-bil income from the Malampaya gas will represent an estimated 60% of earnings from gas sales after the Malampaya consortium has fully recovered its costs. The consortium developing the Malampaya field is led by Shell Philippines Exploration, which has an equity stake of 45%. Other members are Texaco with 45% and state-run Philippine National Oil Co Exploration Corp with the remaining 10%. About $2.1-bil has been invested in the project, making it the country's single biggest foreign investment.