PXP Energy has submitted a proposal to the Department of Energy of the Philippines to use the Malampaya gas facilities in the South China Sea as an integrated gas hub. The Shell-operated Malampaya gas field is one of the largest gas fields in the Philippines, supplying gas to more than 3 GW of power plants, including the Malampaya gas-fired power plant commissioned by Shell, Chevron and state-owned PNOC Exploration in 2001. The field is expected to be depleted within the next decade and the service contract covering the project will expire in 2024.
PXP has expressed interest in buying Chevron's 45% stake in the Malampaya service contract. The company is seeking to take over the facilities after the expiration of the contract and aims to develop the Sampaguita gas prospect in the Reed Bank in the South China Sea. The company has a service contract for the field, but drilling activities have remained on hold due to a territorial dispute with China in the area.
Other projects have been proposed to offset the planned depletion of Malampaya. Energy World Corp (EWC) is working on an LNG import terminal in Pagbilao. First Gen and Tokyo Gas are considering developing an LNG import terminal, while Phoenix Petroleum Philippines and CNOOC have joined forces with state-owned Philippine National Oil Company (PNOC) for a proposed LNG hub venture.