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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 has benefited the country in many ways: delivering a more stable supply of cleaner energy from an indigenous resource, reducing oil imports and providing up to 30% of the country’s energy requirements. Phases 2 and 3 are expected to sustain the level of gas production for the coming years, maintaining national energy security.
|Location:||Offshore Palawan, Philippines|
||Wells are in 820 metres (2,690 feet) of water depth and the reservoir is 2,990 metres below sea level.
|Interests:||Shell Philippines Exploration B.V. 45% (Shell-operated), Chevron 45%,
Philippine National Oil Corporation-Exploration Corporation (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) and developed and operated by Shell
Philippines Exploration B.V. (SPEX) on behalf of joint venture partners
Chevron Malampaya LLC and the Philippine National Oil Corporation-Exploration Corporation.
|Fields:||Camago Malampaya gas reservoir|
|Production:||~ 380 mmscf/d natural gas production; ~ 15 kb per day condensate.
Since it began operations in 2001, the Malampaya project has produced cleaner-burning natural gas for three power plants in Batangas, which have a combined generating capacity of 2,700 megawatts.
The project is now in its next stages of development, Malampaya Phases 2 and 3, which aim to maintain the level of gas production to ensure a steady supply of natural gas to power the Luzon electricity grid. Luzon is the largest and most populous island in the Philippines.
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, which is expected to start production in 2015. It is the first oil and gas platform designed and constructed in the Philippines and its successful completion will position the country as a player in fabrication for the oil and gas industry.
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 through a 504-km (313-mile) underwater pipeline. An onshore gas plant receives the gas for further processing, before it is sent to the three power plants in Batangas.
The new depletion compression platform included self-installing technology. In February 2015, the MP3 platform was towed from its fabrication site and installed beside the existing Malampaya platform in the West Philippine Sea. An in-built jacking system lowered the new platform’s 80-metre legs, lifting it from the water into its final position. This approach avoided the use of large, specialised vessels normally required for offshore platform installation. Most importantly, it minimised interruption to gas production.
Both platforms are designed to withstand typhoons and earthquakes, a challenge unique to this region.
Environment and society
The flow of indigenous natural gas is helping to fuel the country’s growth and progress, supporting government efforts. 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, together with the province of Palawan, is implementing a US aid programme called Movement Against Malaria in 344 villages. The programme has set up centres in each village to provide early diagnosis and prompt treatment of malaria.
In 2002 the United Nations Environmental Programme and the International Chamber of Commerce awarded Malampaya the World Summit Business Award for Sustainable Development in Partnerships for achieving a careful balance of the social, environmental and economic components during development.
Malampaya Phase 3 includes the first offshore platform to be built completely in the Philippines. The project is generating local employment opportunities and bringing technical expertise into the country. It has provided more than 1,200 new jobs for Filipinos, generated more business for local companies and, over the long term, is improving the skills of local workers. Currently the platform is operated by staff who are over 90% Filipinos.
In 2013 the Malampaya Health, Safety and Environment (HSE) Training Centre was inaugurated. It has since trained more than 6,000 Filipinos to world-class HSE standards. This training is mandatory before workers can work on the project, either in the fabrication yard or offshore.
Malampaya Phase 3 also implements strategic social investment programmes at Subic, Zambales, through Malampaya Foundation, Inc. These include livelihood training, as well as education on road safety and disaster response. The programmes help improve the lives of hundreds of Filipinos, long after project completion.
We have provided over 1,200 direct new jobs for Filipinos and generated more business for local companies supporting the project. In the long-term we are helping to raise the level of expertise in-country to world-class standards, allowing the Philippines to compete for future oil and gas projects regionally and globally.