Shell to sell 45% stake in Philippine deepwater gas venture
Malampaya project supplies 20% of country's electricity needs
30 Sep 2020 | Michael Marray

A subsidiary of Royal Dutch Shell is planning to sell its 45% stake in the Malampaya deepwater gas-to-power project, which supplies around 20%  of the electricity requirements of the Philippines.

The original partners of the joint-venture project, located off the coast of Palawan, were  Shell Philippines Exploration, US oil major subsidiary Chevron Malampaya LLC (Chevron), and the Philippine National Oil Company (PNOC). In late 2019, Philippine energy group Udenna Corporation acquired the 45% stake owned by Chevron. The entire project began operating with a first offshore platform in 2001. A second platform started up in 2015.

The project feeds five power plants built near Batangas City, with a combined capacity of 3.2 gigawatts. Philippine independent power producer First Gen Corporation, through its subsidiary First NatGas Power Corp, owns the 414-megawatt San Gabriel natural gas power plant located in Batangas City. Siemens of Germany has been the facility operations and maintenance provider since the commercial operation started in November 2016, while debt finance for the project was provided by KfW IPEX.

The Philippines’ Department of Energy recently approved a First Gen application for a permit to build  an interim offshore LNG terminal in Batangas City.

According to local press reports, the Shell asset sale  is being conducted as part of an ongoing review of its global portfolio, and the company has informed the government of its plans.