Business Mirror
SUNDAY, 20 NOVEMBER 2011 19:19 PAUL ANTHONY A. ISLA / REPORTER
THE Department of Energy (DOE) expects 1 megawatt (MW) of electricity generated from the Libertad gas field in northern Cebu to be added to the Visayas grid within the month, Energy Undersecretary Jose Layug Jr. told reporters in an interview.
Under Service Contract (SC) 40, Forum Energy explored and developed the Libertad gas field is situated in northern Cebu, which was discovered in the late 1950s but was not developed.
Forum Energy Philippines operates the Libertad gas field through Forum Exploration Inc. that owns 66.66 percent of the project and the rest held by Forum Pacific Inc.
Layug said the Libertad gas field is scheduled to go onstream and produce natural gas to fire a one-megawatt power plant this month.
In 1993 to 1995, a testing program was carried out that involved the drilling of seven wells. During the testing program, one of the wells had proven positive results of gas being available.
In 2004, Forum Energy conducted a feasibility study to determine the most commercially viable option for the development of the field, which recommended a development plan using three gas-to-electricity generators with a maximum capacity of 3 MW.
Desco, a provider of petroleum and geothermal products and services, originally proposed to develop the power facility using the gas from the Libertad field.
In February 2009, Forum Energy signed a gas sale and purchase agreement with Desco for the development of the Libertad gas field for power generation. This allows Forum Energy to provide the gas to Desco.
For its part, Forum Energy is obliged to sell the gas to Desco at an agreed rate of $1.50 per million British Thermal Units (BTU) for the first 0.70-billion cubic feet (BCF) of gas extracted and utilized, and $1.60 per million BTU for any gas produced beyond 0.70 BCF.
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