Government-owned firms Philippine National Oil Company (PNOC) and Power Sector Assets and Liabilities Management Corporation (PSALM) have signed a memorandum of understanding (MOU) for the possible sale of “banked gas” from the Malampaya gas field in Palawan.
PNOC, in its website, said that it also signed a non-disclosure agreement with PSALM regarding the possible sale. No other details were disclosed.
PSALM is one of three parties reported to be interested in the “banked gas,” the other two being Lopez-owned First Gen Corporation and Dennis Uy’s Phoenix Petroleum. First Gen, which owns four of the country’s five natural gas plants, confirmed its plans to buy the commodity, while Phoenix did otherwise.
Phoenix is a part of the Udenna Group, which gained 90% ownership of the Malampaya consortium in May. PNOC owns the remaining ten percent.
The PNOC board earlier authorized its management to enter into discussions or negotiations below the $6.616 per petajoules (Pj), as part of the Ilijan gas-fired power plant’s gas and sale purchase agreement. The plant has a contract with the Malampaya consortium that will expire in 2022.
PNOC bought 108.6 Pj valued at Php14.4 billion in 2009, of which 4.61 Pj was sold to PSALM in 2013 for Php937 million. It also sold 6.324 Pj to Shell in 2015 for Php2.5 billion. Shell is the outgoing operator of the Malampaya consortium after selling its 45% stake to Udenna.