Shell allots over $1b for Malampaya expansion The Shell group in the Philippines is allocating $1.1 billion for the second phase of the Malampaya project in the next three years, on top of the annual downstream capital budget of up to P3 billion.
“Shell Philippines Exploration BV has budgeted to spend $1.1 billion in the next three years for the second phase of the Malampaya project, while for downstream we will be spending P2 billion to P3 billion a year for depot, stations and refinery,” Shell country chairman Edgar Chua said over the weekend.
Shell earlier said it planned to invest $75 million in Malampaya this year, including drilling that may start in April.
The second phase of the Malampaya project in Palawan aims to increase gas production to fuel a new 300-megawatt power plant. The Malampaya natural gas field currently fuels three power plants in Batangas province with a combined capacity of 2,700 megawatts-Sta. Rita, San Lorenzo and Ilijan.
The Malampaya gas field is expected to produce until 2024.
“For the refinery, we continue to put in investments in reliability,” Chua said.
Pilipinas Shell Petroleum Corp. is the country’s second-largest oil company in the country with over 900 stations nationwide. Shell operates a refinery in Batangas province with a capacity of 110,000 barrels per day.
The oil company suffered supply disruption last year after a pipeline funneling petroleum to its depot in Manila was shut down.
Shell transports petroleum products via the pipeline from its refinery in Batangas to the Pandacan depot in Manila.
It opted for ship-to-ship product transfers off Manila Bay, redeployment of barges and lorries and long-haul road transportation from depots in Poro, La Union and Tabangao, Batangas. Jeremiah F. de Guzman
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