MVP confirms interest in Malampaya

Businessman Manny V. Pangilinan has confirmed that he is keen on buying Shell’s 45% stake in the Malampaya gas-to-power project.

Pangilinan said his group has been in talks with US investment bank JP Morgan for the planned purchase.

The MVP Group’s PXP Energy Corporation is being eyed as the corporate entity to be fielded in a three-way battle with San Miguel Corporation of Ramon S. Ang and Udenna Corporation of Davao-based magnate Dennis Uy. Udenna already holds the other 45% of Malampaya.

Shell has signified its intention to sell its stake as a strategy to achieve long-term financial stability in the local market.

Malampaya, the country’s only indigenous source of natural gas, began production in 2001 and its reserves are expected to be depleted by 2024. This is critical because it supplies a fifth of the country’s power supply.

Photo credit: Philstar.com