Published
December 9, 2018, 10:00 PM By Myrna M. Velasco
While several investing
parties are now scrambling on the proposed construction of the liquefied
natural gas (LNG) import facility for the country, the operator of the
Malampaya gas field has revealed that the production life of the asset is still
actually good up to years 2026-2029 to feed into the fuel needs of the existing
five gas-fired power plants.
Shell Philippines
President and CEO Cesar G. Romero indicated that such gas extraction potential
is based on assumptions that there would be no commercial discovery yet of a
new gas field.
“The life of Malampaya
is anywhere between 2026 and 2029,” Romero said noting that within that range,
Shell cannot just give an exact date when production decline or depletion will
happen.
“It depends on the
drawdown and it depends on the life of the field – that’s why we always give a
window within that range… if you operate it hard, then you quickly deplete the
asset,” he explained.
In essence, the life of
the Malampaya field could still go beyond the 2024 lapse of the contract of the
Malampaya consortium in Service Contract 38 led by Shell Philippines
Exploration B.V. (SPEX) with American firm Chevron Malampaya LLC and minority
interest-holder Philippine National Oil Company-Exploration Corporation.
“Hopefully the good
timing before that 2026, we already have a new discovery or substitute… or if
unfortunately we really can’t have a new find, only then we can make a more
sensible decision on an LNG import facility, there’s still a good window for
that,” Romero stressed.
The Shell chief
executive opined that the perfect timing for government to really plan for LNG
import terminal is still by year 2023 so it won’t risk having that facility
getting stranded eventually – or better yet, he reckoned that it is actually
more prudent for the country this time to push for fresh round of exploration
activities that could result in new commercial petroleum discovery.
“Before we fully go
head on for an LNG import facility, we should give a chance for exploration of
indigenous resources first because we still have a window for it… if sensibilities
prevail, indigenous always trumps import – it should always be preferred over
imported LNG,” he added.
Shell, he said, is
ready to invest even in “near-field prospects” as there had already been
prospective discovery manifesting east of Malampaya.
“Shell remains
interested in continued exploration in the Philippines – we’re prepared to make
investments, both in near field and new developments, provided there’s clarity
in fiscal regime,” he noted.
The proposed setting up
of LNG terminal, he stressed, “that needs to be carefully evaluated because the
economic question on LNG…if the intent is just to provide fuel to the existing
plants which are of 3-gigawatt capacity, with just one discovery, that’s
already feasible way into the future.”
Romero is referencing
on a timeframe that will be beyond Malampaya’s life cycle or after their
assessed 2026-2029 timeframe.
No comments:
Post a Comment