Solution to Malampaya gas restriction sought

The Department of Energy (DOE) is set to convene gas sector stakeholders in the gas sector in a bid to resolve the gas restriction from the Malampaya field in Palawan.

Based on a Manila Bulletin report, DOE Electric Power Industry Management Bureau Director Mario Marasigan  said that the agency will be tapping members of the Malampaya Service Contract (SC) 38 consortium, as well as the owners and operators of the five Batangas-based liquefied natural gas (LNG) plants to come up with a solution to the problem, which has been lingering since March.

The SC38 consortium is composed of Shell Philippines Exploration B.V., Malampaya’s outgoing operator; Udenna Corporation; and government-owned PNOC-Exploration Corporation. Lopez-led First Gen Corporation, meanwhile, runs four of the five LNG plants, while KEPCO Ilijan Corporation and San Miguel Corporation jointly manage the Ilijan plant.

Ilijan’s derating from 1,200 to 716 megawatts was one of the major contributors to the Luzon Red Alerts earlier this week. 

Energy Usec. Felix William Fuentebella explained during the DOE’s press briefing on Monday that the gas restriction has nothing to do with Malampaya’s depleting supply.