Philippine’s Udenna Corp on Monday said it is proposing a partnership with the exploration unit of the state-owned Philippine National Oil Company (PNOC) to buy Shell’s 45% interest in the Malampaya gas-to-power project. Shell is looking to divest its stake in the project as part of a wider rationalisation push. PNOC Chairman and Energy Secretary Alfonso Cusi said the company would study Udenna’s tie-up proposal.
Shell discovered the Malampaya gas field in 1991. It provides gas for four power plants that account for about 25% of the Philippines’ electricity requirements. Malampaya is expected to run dry by 2027, and the country is considering importing LNG to replace gas supplies from the field. Udenna spokesman Raymond Zorilla said Malampaya is strategic to the Philippines’ future energy security. Zorilla noted that Udenna and PNOC are the best-suited parties to acquire Shell’s stake.
PNOC Exploration Corp owns a 10% in the Malampaya project, while Udenna has acquired a 45% interest in the project from Chevron. Conglomerate San Miguel Corp. has also expressed an interest to buy Shell’s interest.
