State-owned Philippine National Oil Co. signed an agreement over the possible sale of the Malampaya banked gas to the Power Sector Assets and Liabilities Management Corp.
Banked gas is the accumulated unused gas of the Ilijan power plant amounting to 108.6 petajoules as a result of the underutilization of the plant’s take or pay quantity from 2002 to 2007.
The banked gas was originally paid for by the government of the Philippines through the net government share in assistance to National Power Corp., then owner of the Ilijan power plant in Batangas, to satisfy the take or pay provisions under a gas sale and purchase agreement with the service contract 38 consortium.
PNOC president Reuben Lista and PSALM president Irene Joy Besido-Garcia signed a memorandum of understanding and non-disclosure agreement on June 7, 2021 for the possible sale and purchase of the banked gas.
PNOC purchased from the Department of Energy the rights, benefits and entitlements to the banked gas.
The remaining volume of the banked gas is equivalent to 97.67 PK after PSALM withdrew 4.61 PJ in 2013 for the Ilijan power plant. Another portion equivalent to 6.324 PJ was contracted to Pilipinas Shell Petroleum Corp. in 2016 for the Tabangao refinery.