First Pacific Company Limited and its partners have submitted an offer for the acquisition of a 45 per cent stake in the Malampaya gas-to-power project. The group has finalised its intent to acquire the shares of Shell Philippines Exploration B.V. (SPEx) and has submitted a final non-binding offer.
The group comprises First Pacific, its subsidiary Philex Mining Corporation, and one or two banks. The Malampaya gas field is currently being maintained and operated by a consortium led by SPEx. In September 2020, SPEx announced that it would dispose of its 45 per cent stake in Service Contract 38 or the Malampaya gas project.
The Malampaya gas-to-power project is the second biggest source of electric power in Luzon and supplies fuel to five power plants in the area with a combined installed capacity of 3,200 megawatts. Gas from the Malampaya field is expected to be depleted by 2024.