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The Malampaya deep–water, gas-to-power project signalled the birth of the natural gas industry in the Philippines. To date, it has contributed over $5 billion in revenues to the Philippine government while powering 30% of the country’s growing electricity requirements.
|Location:||Northwest Palawan, Philippines|
|Interests:||Shell 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 2700 MW. Natural gas from Malampaya is currently used to provide approximately 30% of the country’s power needs.
The project is now in its next stages of development, Malampaya Phases 2 and 3, which aim to maintain current levels of natural gas production. Phase 2 recently drilled two more production wells using ENSCO 8504’s innovative drilling technology. The Shell team worked hard to safely maintain production from the current wells at the same time. Phase 3 will transfer technology and expertise that will eventually enable the Philippines to be self-sufficient in gas production. Following a bid, Shell awarded local contractors the construction of the depletion compression platform that will house two gas turbine-driven compressors.
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.