Malampaya gas production declines steeply in 2021
The depletion of the Malampaya gas Ʃeld is becoming extremely visible, as its reported production for three quarters in 2021 signiƩcantly dipped to 79.054 billion cubic feet (bcf) almost half only of its 141.732 bcf level in 2020.
Data from the Department of Energy (DOE) showed that 76.040 bcf of last year’s Malampaya output had been supplied to power plant-offtakers (gas purchasers) while the balance of 15 million standard cubic feet had been utilized by industrial buyers.
The DOE report on Malampaya’s gas production also indicated that substantial production decline started in 2020, after peak of extraction of 155.495 bcf in 2019.
The unabated dip in Malampaya’s gas output has been largely felt by its power plant off-takers because they are compelled to either de-rate (reduce) the scale of their electricity generation or import more expensive liquid fuels just to continuously run their power facilities.
As culled from the energy department’s documents, the operator of the Malampaya gas Ʃeld will need to drill one well this 2022 so it can reinforce production at the gas Ʃeld and for it to continually honor obligation under its remaining gas supply and purchase agreements, primarily for the gas-fed power plants of First Gen Corporation of the Lopez group.
Nevertheless, the energy department cannot commit any certainty on the targeted well drilling – given ongoing discussions on prospective changeover of equity-ownership for the Malampaya Ʃeld.
Just last month, Prime Infra Holdings Inc. of billionaire Enrique Razon has announced its interest to partner with Udenna Corporation of Davao businessman Dennis Uy so they can take over the gas Ʃeld from its current operator Shell Philippines Exploration B.V.
The Razon-Uy tandem had not given exact timeframe on when their shares acquisition from Shell will be concluded. Also, they have not laid down specific plans yet on how to stretch the life of the project beyond the expiration of its Service Contract (SC) 38 in February 2024.