TAGUIG CITY – The key terms for the sale of PNOC’s remaining uncontracted banked gas was approved during a Special Board Meeting on May 31, 2022. The Gas Sale and Purchase Agreement (GSPA) between the PNOC and South Premiere Power Corporation (SPPC) was executed on June 23, 2022.
The banked gas is intended to supply the Ilijan Power Plant until full delivery of the total contract quantity on or before February 23, 2024. However, the said delivery has not commenced as the SC38 Consortium and its operator, Shell Philippines Exploration B.V. (SPEX), have yet to comply with the series of directives by the Department of Energy (DOE). The DOE is requiring them to immediately resume the supply and maintain the allocation of natural gas minimum daily contract quantity of banked gas to the Ilijan Power Plant, pursuant to the GSPA.
The sale of PNOC’s remaining uncontracted banked gas assures that PNOC’s remaining pre-paid banked gas, one of its biggest assets, will not be stranded and will be fully monetized. Further, it will ensure the uninterrupted operations of the Ilijan Power Plant which is one of the largest natural gas power plants in the country, thus securing sufficient and affordable power supply in the Luzon grid.