PNOC in talks with PSALM for “banked gas” sale


Philippine National Oil Company (PNOC) and Power Sector Assets and Liabilities Management Corporation (PSALM) are eyeing the “banked” gas from the Malampaya field that could be used for the 1,200 MW Ilijan gas-fired power facility.

PNOC President and CEO Reuben S. Lista confirmed that there is an ongoing discussion, but they are not limiting themselves to just PSALM as targeted buyer of the banked gas.

“We are negotiating with many parties on the banked gas. PSALM is one of them for the Ilijan plant, but we are not talking to them exclusively,” Lista was quoted in a Manila Bulletin report.

The gas sale and purchase agreement (GSPA) for Ilijan will expire in 2022, but its build-operate-transfer (BOT) contract will end in July 2022 yet.

However, there is a pending legal case relating to more than ₱19 billion worth of receivables on the Ilijan plant.

PNOC already set an auction for the banked gas several times but offers were always below targeted sale price for the fuel.

First Gen Corporation was the last party PNOC had negotiations, but the two never agreed on a price.