The Department of Energy (DOE) is consulting with stakeholders involved in the Malampaya gas field project to discuss maintaining the oil and gas pricing formula. This dialogue revolves around the development of new Gas Sale and Purchase Agreements (GSPAs) that will be finalized for the 15-year service contract extension.
In a report by the Manila Bulletin, Energy Secretary Raphael P.M. Lotilla emphasized the importance of retaining the pricing formula, highlighting its track record of stability over the 20-year period it has been in effect.
The energy secretary also reiterated that the price of Malampaya gas is comparatively lower than that of imported liquefied natural gas (LNG), hence the encouraged natural gas exploration to soften the power prices for the country.
He also mentioned that Energy Undersecretary Alessandro Sales spearheaded the discussions with the private sector, including the consortium and gas buyers. The discussions primarily focused on determining the duration of the Gas Sale and Purchase Agreements (GSPAs), aligning them with the 15-year extension outlined in Malampaya’s service contract.
It is worth mentioning that the Malampaya contract, spanning 25 years, concluded in February of this year, including the Gas Sale and Purchase Agreements (GSPAs) for the gas output from the field. Consequently, new supply contracts would need to be established for the remaining gas that can still be extracted from the facility.
Currently, the consortium’s timetable for a new round of seismic surveys and the drilling of at least two wells remains on course. The specific schedule is contingent upon the availability of rigs that can be contracted for these activities.
