Malampaya Deepwater Gas-to-Power Project
Malampaya Deepwater Gas-to-Power Project

Banked gas is the accumulated unused gas of the Ilijan 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 TOP, 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 llijan 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.

The Power Sector Assets and Liabilities Management Corporation (PSALM) withdrew 4.61 PJ in 2013 for the Ilijan power plant and another portion, equivalent to 2.71 PJ, was offtaken by Pilipinas Shell Petroleum Corporation (PSPC) from June 2018 to January 2021 for its Tabangao Refinery. Prior to the consummation of a new sale this year with another buyer, the remaining volume of banked gas is equivalent to 101.28 PJ.

On November 11, 2021, the final draft Gas Sale and Purchase Agreements (GSPAs) based on the Board-approved terms sheet between PNOC and buyers were approved by the PNOC Board of Directors. Subsequently, the GSPAs were submitted to the Office of the General Corporate Counsel (OGCC) on November 15, 2021 for its legal review and concurrence. The favorable contract review of the OGCC was received by PNOC on December 22, 2021. In view of this, PNOC and the buyers proceeded with the signing and execution of the GSPAs, on December 24, 2021. Delivery of banked gas has commenced on December 26, 2021.

Link to the project document: Monetization of PNOC Banked Gas.pdf