In a statement, the San Miguel Corp. (SMC) firm said its subsidiary South Premier Power Corp. (SPPC) acquired the banked gas from PNOC in June this year, countering the Malampaya consortium’s claim that there is no “live contract” between it and-- READ:
for 70 petajoules in banked gas from the Malampaya deep water-to-gas project, contrary to claims made by the consortium that recently took over the project.
The consortium said in a joint statement there were no legal means by which the sale of banked gas to the Ilijan gas plant in Batangas could be made. “In fact, in our discussions for the sale of the banked gas, PNOC disclosed to SPPC that the government has fully paid the Consortium for the gas, which means that 100% of the gas should be deliverable to SPPC.
However, since Ilijan was cut off from Malampaya supply last June 2022, the system demand and supply situation has been very fragile with elevated and volatile electricity spot prices, the firm noted. “With no new major baseload capacities expected in the coming months, it is crucial for government to reintegrate Ilijan’s 1,200 MW capacity into the Grid in the interest of energy security,” it said.
Should the Malampaya supply be delivered to Ilijan, other affected power facilities can alternatively use condensate fuel, as allowed under their PSAs with Meralco, the firm noted.
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