Banked gas is the accumulated unused gas of the llijan Power Plant, amounting to 108.6 Petajoules, as a result of the underutilization of the plant’s Take-or-Pay quantity (TOPQ) within the period 2002 to 2007. Under TOPQ, a fixed quantity of gas is being paid for by the power plant every year, whether they use the gas or not.
The banked gas was originally paid for by the Government of the Philippines (GOP), through the Net Government Share, in assistance to the National Power Corporation, then owner of the Ilijan Power Plant, to satisfy the plant’s TOPQ provisions of their GSPA with the Service Contract Number 38 (SC38) Consortium.
In September 2009, PNOC purchased from the DOE all the rights, benefits and entitlements of the banked gas.
Currently, the remaining volume of the banked gas is equivalent to 97.67 PJ since the Power Sector Assets and Liabilities Management Corporation (PSALM) withdrew 4.61 PJ in 2013 for the llijan power plant and another portion, equivalent to 6.324 PJ, was contracted to Pilipinas Shell Petroleum Corporation (PSPC) in 2016 for its Tabangao Refinery. As of March 31, 2021, PNOC is having an on-going discussion with a party who is signifying interest to buy the banked gas. The Memorandum of Understanding and Non-Disclosure Agreement are being finalized between PNOC and the said party to facilitate exchange of information towards reaching a more definitive and binding agreement.
Link to the project document: Monetization of PNOC Banked Gas.pdf