PNOC offering banked gas from Malampaya, sets Sept. 3 deadline

By Lenie Lectura - August 9, 2018

https://businessmirror.com.ph/pnoc-offering-banked-gas-from-malampaya-sets-sept-3-deadline/

THE Philippine National Oil Co. (PNOC) is again soliciting offers for the sale of unused Malampaya natural gas, more known as banked gas.

“PNOC invites interested parties to submit offers to buy its 97.67 Petajoules of Banked Gas,” it said in a bid invite published on Tuesday.

PNOC requires that each offer be submitted in two identical sets in sealed envelope and these must be received on or before September 3 at 2 p.m.

The maximum average daily quantity deliverable to the buyer is 32.22 terajoules per day. The end- date delivery is until February 23, 2024, and the delivery point is the Malampaya Onshore Gas Plant in Tabangao, Batangas.

Those with acceptable offers will be required to submit qualification documents to establish their legal, technical and financial eligibility.

PNOC earlier sent out a similar bid invite. However, PNOC Executive Assistant Atty. Jannefer Pelayo said “no one qualified.”

“PNOC is offering it again for sale through submission of offers which will be evaluated and further negotiated to get the best value for the government. PNOC will negotiate for the best offer subject to the final approval of the board of directors. We will study if there is a need for Swiss challenge,” she said.

PNOC said last year that proceeds from the sale of the banked gas, amounting to about P11.9 billion, will be utilized to finance government’s plan to put up a liquefied natural gas (LNG) hub.

PNOC said it is swamped with offers from foreign and local firms for a partnership in the former’s plan to put up an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts. This is targeted to be completed in 2020.

“We are still in the process of evaluating the unsolicited proposals with the ADB [Asean Development Bank]. We are strongly hoping to find our partner for the LNG project soon,” said Pelayo, adding that the intention is to finalize its LNG plan, including its preferred partner, within the year.

PNOC earlier tapped the services of ADB as consultant for its planned LNG project.

PNOC had said it received offers from First Gen Corp., Energy World Corp., PT Jaya Samudra Karunia, PT PGN LNG Indonesia/PT Bosowa Corporindo with local partner MOF Corp., Korea Electric Power Corp., Lloyds Energy Group and China National Offshore Oil Corp.

The planned LNG project should be completed before the expected depletion of the Malampaya offshore gas find near Palawan island in 2024.

The Malampaya project currently supplies fuel to five natural gas plants with a total installed capacity of 3,211 MW. This amounts to 21.33 percent of the installed capacity of the Luzon grid and almost 15 percent of the country’s total installed capacity.

LNG is natural gas that has been converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is regasified so it can be distributed through pipelines as natural gas.