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Malampaya Phases 2 & 3
The Malampaya deep-water gas-to-power project signalled the birth of the natural gas industry in the Philippines. The project is benefiting the country in many ways: it delivers a more stable supply of cleaner energy from an indigenous resource with reduced oil imports and meets up to 30% of the country’s energy requirements.
|Location:||Northwest Palawan, Philippines|
||820 metres (2,690 feet)|
|Interests:||Shell Philippines Exploration B.V. 45% (Shell-operated), Chevron 45%,
PNOC-EC (government) 10%
|Key contractors:||Malampaya is a joint undertaking of the Philippine national government
and the private sector. The project is spearheaded by the Philippine
Department of Energy (DOE) developed and operated by Shell
Philippines Exploration B.V. (SPEX) on behalf of joint venture partners
Chevron Malampaya LLC and the PNOC Exploration Corporation.
|Fields:||Camago Malampaya gas reservoir|
|Production:||~ 380 mmscf/d natural gas production; ~ 15kb per day condensate.|
Since it began operations in 2001, the Malampaya project has produced cleaner-burning natural gas which supplies three power plants in Batangas, with a combined capacity of 2,700 MW.
The project is now on its next stages of development, Malampaya Phases 2 and 3, which aim to maintain the level of gas production to fulfill commitments under existing gas sales agreements and provide a steady supply of natural gas to power the Luzon electricity grid.
Two additional production wells were successfully installed in 2013, marking the completion of Malampaya Phase 2. Malampaya Phase 3 involves the design, fabrication and installation of a new depletion compression platform.
State-of-the-art technology extracts natural gas and condensate from the depths of the Palawan basin. It then processes the gas in a nearby shallow water production platform and transports it across three provinces through a 504-km (313-mile) underwater pipeline. An onshore gas plant receives the gas for further processing, before it is sent to three power-plant customers.
Environment and society
The flow of indigenous natural gas is helping to fuel the country’s growth and progress in partnership with the government. In co-operation with partners Oriental Mindoro and Batangas, Shell is supporting health improvement, livelihood generation programmes and environmental conservation efforts through the Malampaya Foundation.
In Palawan, for example, the foundation is implementing a US-aid programme called Movement Against Malaria together with the province of Palawan in 344 villages. The programme has set up centres in each of these villages to ensure early diagnosis and prompt treatment.
Malampaya was also recognised by the United Nations Environmental Program and the International Chamber of Commerce with the 2002 World Summit Business Award for Sustainable Development in Partnerships, in Johannesburg, South Africa, in recognition of the careful balance of the social, environmental and economic components in the course of development.
Malampaya Phase 3 includes the first offshore platform to be fully built in the Philippines. The project is generating local employment opportunities and bringing technical expertise into the country.
It has provided over 1,000 direct new jobs for Filipinos, generated more business for local companies supporting the project and, in the long-term, is raising the skill set of local workers.
In 2013 the Malampaya Health, Safety and Environment (HSE) Training Centre was inaugurated. It has since trained over 6,000 Filipinos trained to world class HSE standards. This training is mandatory before workers can work on the project, either in the fabrication yard or offshore.