Page 6 - AsiaElec Week 10 2021

AsiaElec GAS-FIRED GENERATION AsiaElec

FPC-led group bids for Shell’s stake in

Philippine gas field

PHILIPPINES A group of companies, led by Hong Kong-based Sampaguita gas discovery.
First Pacific Co. (FPC), has submitted an offer for Philex Mining is a stakeholder in PXP Energy,
Royal Dutch Shell’s 45% stake in the Philippines’ which owns 77.66% of UK-listed Forum Energy,
largest natural gas field. which holds a 70% stake in SC 72.
FPC CEO and managing director Manuel V “If we are fortunate to get SC72 going, we
Pangilinan said on March 1 that the group, which would need the facilities of Malampaya to pro-
includes Philex Mining and “one or two other cess the raw gas that would be produced by SC72,
banks”, had bid for the stake in the deepwater so regardless of whether we own it or not, we will
Malampaya field. have to pipe the gas to Malampaya for process-
“We have submitted a final non-binding offer ing and then of course [via] Malampaya’s existing
to Shell,” Pangilinan said. “Obviously, we did not pipeline over to Batangas so that it can be piped
follow all of the terms of reference... but since we to the existing gas plants out there in Batangas,”
have requested our due diligence, it covered cer- Pangilinan said. “Independent of whether we are
tain things. So, we made our offer. It’s up to Shell successful in investing in Malampaya, we will
to conclude whether those terms are acceptable pursue SC72 because SC72 needs Malampaya.”
to them or not.” Shell announced plans in September 2020 to
Malampaya supplies feedstock gas for around exit the field, after US super-major Chevron sold
40% of the power generated on the country’s its 45% stake in the project to Udenna in March
main island of Luzon. While the field is expected 2020. State-owned PNOC Exploration Corp.
to run dry in the next few years, Pangilinan said (PNOC-EC) owns the remaining 10%.
during a March 4 press conference that the exist- Pangilinan said in October 2020 that his
ing infrastructure could be used in the develop- group had entered into talks with JP Morgan,
ment of the adjacent Service Contract (SC) 72, which is acting as Shell’s adviser, over the poten-
which spans 8,800 square km and contains the tial acquisition.™

Jemena welcomes report on

gas’ “critical” role

AUSTRALIA AUSTRALIAN gas infrastructure operator specifically in support of renewable projects was
Jemena has welcomed a new report that claims likely to be very low.
the cleaner-burning fuel is a “critical element” in Jemena managing director Frank Tudor said
the net-zero future of the country’ power mix. the report demonstrated the “crucial role” gas
Jemena said on March 4 that the Frontier would continue to play in delivering reliable and
Economics report, Potential for Gas Powered sustainable energy.
Generation to Support Renewables, had found Tudor said: “This report demonstrates that
that gas was best placed to secure the energy sys- the most efficient way of achieving net-zero
tem during renewable droughts. emissions in the electricity sector is to ensure
The report points to South Australia’s experi- gas-powered and renewable generation work
ence of such a drought and the role that gas-fired in concert with one another, with gas providing
power generation can play in a system with a crucial firming power when renewable genera-
large amount of renewable generation. tion is unavailable, particularly over prolonged
The state has developed into the country’s periods when other firming solutions such as
renewables powerhouse over the last two dec- battery and pumped hydro will have depleted.”
ades, growing the industry from a zero base to He added: “Modelling in the report demon-
accounting for 60% of electricity supply in 2020. strates that the gas/renewable generation part-
However, the path has not been smooth, with nership is also the cheapest way of achieving
infrastructure challenges highlighted when net-zero emissions, with total resource costs
storms in 2016 knocked out wind farms and led reducing by as much as 36% when gas-powered
to widespread blackouts. generation is used to support renewables.”
The Frontier Economics report noted that While Jemena is understandably delighted by
gas’ role in providing firming power was under- the report’s findings, environmental activists are
valued in long-term investment modelling, less likely to add their voices to the chorus.™
and that gas-fired power generation designed

P6 www. NEWSBASE .com Week 10 10•March•2021