THE Department of Energy (DOE) might get to bid out soon the gas sale and purchase agreement (GSPA) for the additional natural gas supply that could still be extracted from the Malampaya gas project, Energy Secretary Jose Rene Almendras told reporters on Tuesday.
At the Senate, however, Senate President Juan Ponce Enrile, reacting on complaints lodged by the family of slain broadcast journalist Gerry Ortega on the alleged misuse of over P3 billion in royalties derived from Malampaya and turned over to the Palawan local government, said he is mulling a separate inquiry into the reported fund anomaly.
“We can look into what happened to the Malampaya fund,” Senate President Juan Ponce Enrile told Ortega’s relatives, who sought the senator’s help in pursuing the slain journalist’s exposé on alleged Malampaya fund misuse.
In a recent interview, the Energy chief said they have already expressed their plan to bid out the GSPA to the Malampaya consortium soon. “We have already met with the Malampaya consortium, who in turn agreed to determine the volume that is still available to be bid out,” Almendras added.
The Ortegas, accompanied by retired Army Gen. Danny Lim, Fr. Robert Reyes and other supporters, delivered separate letters to Senate President Enrile and Sen. Teofisto Guingona III, the blue-ribbon committee chairman, seeking a congressional inquiry into the irregularities.
Michaella Ortega informed Senators Enrile and Guingona that his late father, who hosted a daily radio program in Palawan, had been exposing details of audit reports citing misuse of provincial funds, as well as Malampaya royalties remitted to the provincial government.
“One of the last things he discussed with me is the need to increase the noise on Malampaya fund misuse to prevent the release of new Malampaya funds until previous releases are properly accounted for and safety measures are in place to ensure that Palaweños benefit from these,” Ortega related in her letter to the senators.
Enrile indicated to Senate reporters in earlier interviews that the Senate may have to conduct a separate scrutiny of how the multibillion-peso Malampaya royalties were being disbursed.
He added they would also ask newly named Commission on Audit (COA) Chairman Ma. Gracia Pulido-Tan to provide the Senate with a copy of the COA report on the Malampaya funds.
In addition, Enrile assured Ortega’s relatives he would personally ask Justice Secretary-designate Leila de Lima to keep him posted on the progress of the Department of Justice’s investigation into the broadcaster’s death. “That’s public document. That’s not a security document,’’ Enrile explained.
Almendras also indicated that the Energy department plans to bid out the GSPA to potential power producers soon. But, the Malampaya consortium just has determine how much more gas is left there to offer.
Almendras also noted that there are few people who have expressed willingness to build natural gas-fed generation facilities.
The Malampaya consortium is led by Shell Philippines Exploration BV and Chevron Malampaya Llc., which hold 45 percent each interest in the Malampaya project, while the Philippine National Oil Co. holds the remaining 10 percent of the project.
For his part, Edgar Chua, Shell Group of Companies in the Philippines country chairman, said they have agreed to submit their report on how much additional gas is available before the end of June.
Chua declined to give a final date, saying that the end-June target was based on their latest timetable.
First Gen Corp. has been waiting for the consortium’s final plans on when it will sell the excess gas before it pursues its planned San Gabriel natural gas plant in Batangas.
Francis Giles Puno, First Gen Corp. president and chief operating officer, said they have been ready for the San Gabriel natural gas power project, except that it has been dependent on the additional gas supply from the Malampaya.
He quickly pointed out that there are still no clear indications from the Malampaya consortium as to how much additional capacity is still available from the Malampaya gas project.
“We understand the Malampaya consortium has to make certain investments to maintain and increase the capacity of the Malampaya gas field. Right now, we haven’t really ascertain if there’s more gas available,” Puno said.
What they understand, according to Puno, is that the existing 2,700 megawatt (MW) of existing capacity is still available.
The Malampaya gas project contains reserves of up to 3,000 MW, where only 2,700 MW is being used to power up three natural gas power plants, namely, Santa Rita and San Lorenzo, and Ilijan power facilities in Batangas.
The Malampaya consortium earlier revealed its plans to invest $1 billion to produce the additional 300 MW and ensure reliability of production from the Malampaya gas field.
The Malampaya gas field is expected to produce until 2024 but the consortium is already readying plans to explore for more gas in its service contract in Northwest Palawan.

























