The Philippine National Oil Company (PNOC) said on Friday it sold a part of the banked gas from the Malampaya gas field to undisclosed

buyers on December 26, according to a Manila Standard report.

PNOC Officer-In-Charge President and CEO Graciela Barleta did not provide specifics due to confidentiality agreements. The government-owned oil firm is set to use proceeds from the sale to finance the company’s projects.

Both parties signed and executed the gas purchase agreement on Christmas Eve.

The banked gas, referring to the accumulated unused gas of

the Ilijan natural gas power plant, resulted from the underutilization of the plant’s take or pay quantity from 2002 to 2007.

Back in June last year, PNOC signed a memorandum of understanding with the Power Sector Assets and Li

abilities Management Corporation (PSALM) for the latter’s planned acquisition of the banked gas.

However, the Malampaya gas restrictions have further stalled the deal for the possible sale of the unused gas, according to a report by The Philippine Star.

PSALM President and CEO Irene Besido-Garcia said PNOC still can’t ensure PSALM

of a higher supply should the transaction between both state firms push through given the gas restrictions.

Malampaya first underwent a gas restriction in March, which lasted

over two months, only to be repeated in June. These pushed up electricity prices as some gas-fired power plants were forced to shift to more expensive liquid fuel or condensate.