Malampaya Phases 2 & 3
The Malampaya deep-water gas-to-power project signaled the birth of the natural gas industry in the Philippines. It delivers up to 20% of the country’s electricity requirements using indigenous resources of natural gas, the cleanest-burning hydrocarbon, and reduces the need for imported oil. Phases 2 and 3 have sustained levels of gas production in recent years, helping to maintain national energy security.
Our Malampaya deep-water gas-to-power project off the coast of Palawan began operating with a first offshore platform in 2001. A second platform started up in 2015 – the first to be designed and built in the country – to help maintain vital supplies of energy for years to come.
Read the Phase 2&3 project press release on our Philippines website and view photos on Flickr.
Find out more about Malampaya's sustainable development projects
Time-lapse video shows the making of Malampaya
Title: Shell – Malampaya
Duration: 1:00 minute
Shell – Malampaya
[Background music plays]
Dramatic music
[Text displays]
Self-Installing platform helps keep the lights on
Malampaya Deep-water Gas-to-Power
Project Phase 3, Philippines
[Video footage]
Sped-up footage of the erection of a centrally-located, tall, red gantry on a vast, level concrete foundation. Construction equipment and vehicles move about around the gantry as it’s being raised. Blue-roofed warehouses are visible at the side of the foundation area.
[Text displays]
More than 1,400 Filipino workers built the platform at the fabrication yard
[Video footage]
Sped-up aerial footage of the fabrication yard, which is located in an open, below-ground area. The tall, red gantry moves overhead on tracks either side of the fabrication yard, lowering massive, modular pieces of a building being constructed in the sunken area. The scene is very busy, with workers constantly coming and going.
[Text displays]
Construction took around two years
[Video footage]
Sped-up footage. The camera zooms in on the work going on on the upper level of the building being constructed in the fabrication yard. More massive modular pieces of the building are being lowered into place on the construction by the gantry.
[Text displays]
The new platform was towed 50 km offshore
[Video footage]
The building which was being constructed in the sunken area, supported on a massive floating platform, is towed away from the pier and out of the harbour by two tugboats. A tall, massive leg extends from each corner of the floating platform.
The tugboats tow the floating platform further out to sea, passing a densely-forested headland.
[Text displays]
The platform legs were lowered into the sea
[Video footage]
Sped-up footage of the platform in open ocean. There is a tugboat attached to each leg. The tugboats are each positioned at an equal distance from each leg, facing away from the platform.
[Text displays]
The topsides were raised into position
[Video footage]
Sped-up footage, from the deck of an adjacent platform, of the platform with its legs now lowered about halfway into the ocean. The platform begins to rise.
Close-up, at deck level, of the rising platform.
[Text displays]
A 50-metre bridge connects the platforms
[Video footage]
Sped-up footage. The platform has risen to the top of the four legs. A crane from the adjacent platform lowers a metal bridge to span the narrow gap between the two platforms.
[Text displays]
This is the first offshore platform designed and built in the Philippines
[Video footage]
Sped-up footage of the two platforms at dusk. A flame is visible at the top of near-vertical narrow chimney on one of the platforms. A tugboat floats alongside as the sky darkens and lights come on on the two platforms.
[Text displays]
The platform will help maintain the supply of natural gas
[Video footage]
Sped-up footage of a night-time scene on the platform. The view is a closer one, from just alongside the platform. As we watch, the platform rises. Workers are visible on the various levels of the platform.
[Text displays]
Malampaya meets around 30% of the Philippines’ energy needs
[Video footage]
A foggy daytime scene of the two platforms, side by side, in the open ocean.
[Graphic]
Shell logo
[Music ends]
Key facts
Location: Offshore, northwest of Palawan island; West Philippine Sea
Depth: Wells are in 820 metres (2,690 feet) of water 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: Malampaya-Camago gas reservoir
Production (100%): ~ 429 mmscf/d natural gas production; ~ 15 kb per day condensate
Current developments
Since 2001, the Malampaya project has been producing cleaner-burning natural gas for three power plants at Batangas, on the country’s largest and most populous island of Luzon. The power plants have a combined generating capacity of 2,700 megawatts – enough to meet up to 30% of Luzon’s electricity needs, or about 20% of the country’s total electricity requirements.
Shell successfully completed Malampaya Phase 2 in 2013, which added two new production wells. Malampaya Phase 3 saw the design, fabrication and installation of a new depletion compression platform to maintain levels of gas production, which began operating in October 2015. This was the first oil and gas platform to be designed and built in the Philippines, and its successful completion has made the country a player in construction for the oil and gas industry.
Technology
The project extracts natural gas and condensate from the depths of the Palawan Basin. A nearby shallow-water production platform processes the gas and exports it through a 504-km (313-mile) underwater pipeline to a gas plant on shore. This processes the gas further and sends it to three power plants in Batangas.
In February 2015, Shell towed the Malampaya Phase 3 depletion compression platform from its construction yard out into the West Philippine Sea, where self-installation technology lowered its 80-metre legs, positioning it next to the existing platform. Self-installation takes away the need for large vessels specialising in offshore platform installation. Most importantly, its use on Malampaya Phase 3 minimised interruption to gas production.
Both platforms are designed to withstand typhoons and earthquakes, a challenge unique to this region.
Watch the film: Standing firm in the Ring of Fire
Environment and society
The flow of indigenous natural gas from the West Philippine Sea is helping to fuel the Philippines’ economic growth and progress. Shell supports health improvement, livelihood generation programmes and environmental conservation efforts through its partner foundations in Palawan, Oriental Mindoro and Batangas.
In 2002, the United Nations Environmental Programme and the International Chamber of Commerce selected the Malampaya project for the World Summit Business Award for Sustainable Development in Partnerships. The project was rewarded for achieving a careful balance of social, environmental and economic components during its development.
Pilipinas Shell Foundation, the social arm of Shell in the Philippines, works with the province of Palawan to implement a USAID programme called Movement Against Malaria in more than 300 villages on Palawan island. The programme has set up centres in each village to provide early diagnosis and prompt treatment of malaria.
Beyond providing power for large cities and industries, the Malampaya project aims to bring sustainable and affordable energy to communities least likely to be connected to the grid. Pilipinas Shell Foundation has also put in place a micro-grid using hydropower and solar energy to power the village of Kalakwasan on Palawan island. The village is home to the Batak indigenous people. Today all homes in Kalakuasan are powered by the mini-grid and tribesmen are trained to operate and maintain the system.
Watch the film: Lighting lives in the deep forest
Malampaya is located in one of the most biologically diverse areas of the world, known as the Coral Triangle. Its waters are important for biodiversity and vital for the livelihoods of many local villages which depend on them for fishing. But the species-rich waters and corals are under threat from natural phenomena such as storms, illegal fishing and over-fishing. The Malampaya Foundation, the project’s social arm set up by the joint venture partners, is working with communities to help manage and restore their local marine resources and enhance livelihoods.
Building local skills and expertise
Malampaya Phase 3 included the first offshore platform to be designed and built completely in the Philippines, and brought new technical expertise into the country. Shell is helping to raise project expertise to world-class levels in the long term, enabling the Philippines to compete for future oil and gas projects regionally and globally.
The third project phase has provided more than 1,200 new jobs for Filipinos, generated business for local companies, and is improving the skills of local workers. More than 90% of those operating the platform are Filipinos.
Poor and unemployed young adults from local communities can gain skills for jobs in areas such as welding, pipe-fitting, and construction as part of a vocational training programme run by the Malampaya Foundation. The programme, called Bridging Employment through Skills Training (BEST), links trainees with industries in need of skilled workers. Since 2007 more than 4,000 young adults have graduated from this programme, 80% of whom have found work in the Philippines or abroad.
Watch the trainees seizing the chance for a better life
Safety training is mandatory before anybody is allowed to work on the Malampaya project. In 2013, the Malampaya Health, Safety and Environment (HSE) Training Centre opened. It has trained more than 6,000 Filipinos to world-class HSE standards.
Shell Malampaya Phase 3: Behind the scenes at a deep-water project
Title: Behind the Scenes at a Deep-Water Project
Malampaya Phase 3, Philippines
Duration: 2:35 minutes
Description:
As Malampaya Phase 3 nears completion, project leaders talk about the milestones of the project and how safety always comes first in this massive undertaking.
The Malampaya Project in the Philippines is the country’s largest undertaking in the oil and gas industry. It powers up to 45% of the archipelago’s biggest island-- where the nation’s capital is located. In order to continue meeting this demand for cleaner and cheaper power, Shell is building a new depletion compression platform, the first to be built in the country.
Behind the Scenes at a Deep-Water Project
Malampaya Phase 3, Philippines Film Transcript
[Video Footage]
Panning shot of DCP in the dry dock area of Keppel Subic
[Text Displays]
Behind the scenes at a deep-water project
Malampaya Phase 3, Philippines
[Background music plays]
Bright, uplifting music
[Video Footage]
Panning shot of DCP Modules on Lot 4 area of Keppel Subic with Gantry Crane, before lifting process
Engineers and supervisors discussing
Time Lapse of DCP Compressor Lifting on Lot 4 Area
Time Lapse of DCP Compressor Lifting in Dry Dock Area
Interview with Mike Castel
[Name and Title]
MP2&3 Deputy Project Manager
[Mike]
“Pretty much, we’re about to embark on the completion side of the project and the finish line is in view”.
[Voice Over]
“Barangay Kapis, the safety club of MP3, has over a thousand members who are committed to make safety a way of life”.
[Video Footage]
Barangay Kapis Fiesta at Keppel Subic
Handing out of Barangay Kapis Badge to inducted members
Barangay Kapis member writing on commitment wall
Gilas Coach Chot Reyes as motivational speaker at Barangay Kapis Fiesta
Interview with Rob Kretzers
[Name and title]
Shell Executive Vice President Projects
[Rob]
“Safety is our first priority. And it will stay at any moment in time. I’m impressed positively. I’m particularly impressed by the way the people are taking care of themselves and of their co-workers. I really like the emphasis in an equal manner of safety, quality and productivity”.
[Video Footage]
Footage of Robert Kretzsers Keppel Fabrication Yard visit with Nathan Stephenson, CSR and Antoine Bliek, MP2&3 Project Manager.
[Text displays]
Shell EVP Projects Rob Kretzers
Visit to the Fabrication Yard
April 2014
Interview with Devan Chandrasegaran
[Name and title]
Fabrication Yard Deputy Company Site Representative
[Devan]
“The second quarter of the year, the milestone was the installation of these five main modules as well as the two infrastructures. All these activities will pretty much allow the integration, as well as the system completion to take place”.
[Video Footage]
Panning shot of the DCP in the Dry Dock Area of Keppel Subic with Local Equipment Room (LER) Module being lifted
Panning shot of the other 4 modules on Lot 4 area of Keppel Subic with ACB being lifted by Gantry Crane
Shot of ACB lifting from DCP POV
Time Lapse of ACA lifting
Shot of pipe rack
Pipe rack lifting onto DCP
[Background music plays]
Bright, techno music
[Voice Over]
“Majority of the equipment and materials have arrived from all over the world”.
[Video footage]
Truck delivery of steel beams to Keppel Subic
Unloading of steel beams
Time Lapse of offloading of cooler
Offloading of steel pipes
Offloading of short legs on Keppel Quay Area
Interview with Martyn Turner
[Name and title]
MP2&3 Engineering Manager
[Martyn]
“The equipment came from over 20 different countries. The most farther part is the US, Canada, Europe in terms of Germany and France, Turkey. And then closer to home Korea, Singapore, China, Malaysia and Indonesia. So it’s been really a worldwide effort.”
[Animated Sequence]
World map zooming into US and highlighting the country, pointing to it as origin of the components of the DCP
[Text displays]
United States
Gas Turbine
[Animated Sequence]
World map moving to European region, highlighting the countries and pointing to them as origin of the components of the DCP.
[Text displays]
Germany
GC Components
France
Discharge Cooler
United Kingdom
Pedestral Crane
Turkey
Angles and Shapes
Norway
Gas Compressor
[Animated Sequence]
World map moving to Asian region, highlighting the countries and pointing to them as origin of the components of the DCP.
[Text displays]
Korea
HP/ LP Vessels
Singapore
Pipes, fittings, flanges
[Animated Sequence]
World map zooming out to include India and China, highlighting the countries and pointing to them as origin of the components of the DCP.
[Text displays]
India
Vessel Internals
China
Oil Cooler & Console
[Animated Sequence]
World map moving include Malaysia, highlighting the countries and pointing to them as origin of the components of the DCP.
[Text displays]
Malaysia
Tubular Legs
Nitrogen Gas
[Animated Sequence]
World map zooming out to include all highlighted countries where different components of the DCP came from.
[Voice Over]
”The arrival of the 65 metre-long upper legs is another remarkable feat.”
[Video Footage]
Hansa Heavy Lift Vessel with offloading of upper legs at Keppel Quay Area
Panning shot of Hansa Heavy Lift Vessel during offloading of upper legs at Keppel Quay Area
Time Lapse of upper legs offloading
Interview with Ken Loh
[Name and title]
MP3 Substructure Team Lead
[Ken]
“Delivery of the upper legs obviously is a milestone to MP3 project. The upper leg itself together with the lower leg consist of 2,500 ton of the total platform weight. That is about 20% of the total platform weight.”
[Video Footage]
Panning shot of upper legs in EEW Johor Bahru, Malaysia
Time Lapse of upper leg being transported out of EEW
Time Lapse of upper leg being transported from EEW to Johor Bahru Port Area
Panning shot of upper leg at Johor Bahru Port Area
[Background music plays]
Bright, uplifting music
[Video Footage]
Time Lapse of DCP module lifting in dry dock area of Keppel Subic
[Voice Over]
”Malampaya will continue to power this nation through the years to come, as one team with one goal and one future.”
[Video Footage with Sound on Tape]
Project and Asset Teams on Malampaya Platform just after crossing the gangway
“One Team. One Goal. One Future.”
Shell logo: Pecten
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