Malampaya hits all-time high yield in 2018

By Myrna M. Velasco – February 17, 2019, 10:00 PM
from Manila Bulletin

Malampaya gas field hit an all-time high record last year, producing 150,804 million standard cubic feet (mmscf) of gas, the biggest since the start of its commercial production almost two decades ago.

Department of Energy (DOE) logo
(MANILA BULLETIN)

The gas platform’s 2018 production volume was also higher by 8.33 percent vis-à-vis Malampaya’s output in 2017 at 139,209 mmscf, according to the Department of Energy (DOE).

Rising gas extraction from the field would also redound to heftier royalty share for the Philippine government – which in turn could shore up the state’s cash hoard.

Throughout the gas field’s operations, the highest production volumes prior to the 2018 record had been at: 140,516 mmscf in 2016; 140,368 mmscf in 2011; 139,209 mmscf in 2017; and 138,030 mmscf in 2009.

Looking at the extraction trajectory in the last five years, it was evident that the Malampaya field has been yielding increasing gas output – with some degree of softening during maintenance shutdown years – 2013 and 2015.

It could be gleaned from data that the field’s production is still not abating, despite previous forecasts and assertions from government officials that the Malampaya field may already run out of gas in the next 3 to 5 years.

For last year, the country’s gas needs for its power plants and industrial end-users had been at 145,273 mmscf – inferring then that production has been higher versus demand.

“Power generation accounted for the highest share in usage of 98 percent and the remaining 2.0 percent for industrial sector,” the energy department stressed.

The DOE further explained that “increase in the volume of supply was the result of Malampaya’s production availability of 98.5 percent with an average daily gas production to customers of 399 mmscf per day.”

Another factor leading to higher output last year hinged on the fact that “there was no maintenance activity conducted by the operator in the platform during the year.” The gas field operator is Shell Philippines Exploration B.V. (SPEX) of the Malampaya consortium, which also ropes in Chevron Malampaya LLC and state-run Philippine National Oil Company-Exploration Corporation (PNOC-EC) as equity shareholders.

For 2019, however, the DOE is anticipating Malampaya’s output to drop by 7.0 percent to 141,255 mmscf, “primarily due to the scheduled five-day maintenance shutdown at the Malampaya platform to be implemented in October this year.”

The department said the scheduled maintenance downtime will “affect the operation of all natural gas power plants,” including the refinery of Pilipinas Shell Petroleum Corporation.

“Maintenance activities for all natural gas-fired power plants, including the refinery, are expected to be implemented in 2019. This will also impact on the nomination on the volume of natural gas from the Malampaya field,” the DOE emphasized.