ChevronTexaco Contemplates Buying Malampaya Gas
ChevronTexaco, the parent firm of Caltex Philippines Inc., is looking at the possibility of buying the remaining 300 megawatt (MW) natural gas produce of the Malampaya Deep Water Gas to Power project to fire up its co-generation facility in Batangas.
"We are willing to buy natural gas for our co-generation power facility in San Pascual, Batangas. However, we need to amend the power purchase agreement (PPA) if we are going to use the natural gas," Texaco Philippines Inc. (TPI) managing director James J. Lejeune said. TPI is a unit of ChevronTexaco of US.
Malampaya is expected to sell its natural gas to Sta. Rita, San Lorenzo and Ilijan power plants.
Malampaya, located in northwest Palawan, contains natural gas reserves of at least 2.7 trillion cubic feet (Tcf) and 85 million barrels of condensate – enough to provide 2,700 to 3,000 MW of power for an extensive period of more than 20 years.
Lejuene said they are currently negotiating with the state-owned National Power Corp. (Napocor) and the Power Sector Assets and Liabilities Management Corp. (PSALM) for the amendments of the PPA.
The 300-MW co-generation power plant of TPI is located near the Caltex refinery in Batangas.
It is expected the TPI would take initiative to participate in the downstream development of the natural gas since its mother company, Texaco of USA, is one of the main proponents of the Malampaya’s upstream natural gas development.
Aside from Texaco which owns 45 percent of the Malampaya project, the other members of the consortium include Shell Philippines Exploration B.V. (Spex) with 45 percent and state-owned Philippine National Oil Co.-Exploration Corp. (PNOC-EC).