The $4.5-billion Malampaya project, which has an estimated reserve of 3.7 trillion cubic feet of natural gas and supplies 2,700 megawatts of power to three natural gas power plants Sta. Rita, San Lorenzo and Ilijan in Batangas. It provides about half of the requirements of the Luzon grid and 30 percent of the entire power needs of the country.
There is currently 529.5 km of natural gas transmission pipelines in the Philippines which transport gas from the Malampaya Gas Field to fuel three power plants: 500 MW San Lorenzo, 1,000 MW Sta Rita and 1,200 MW power plants. A total of 423 km of transmission pipeline are being proposed and will be constructed between the periods from 2011 to 2020. These projects are envisioned for the island of Luzon where demand concentration for natural gas is projected to be the highest in the next 10 years. Currently, the Philippine National Oil Company is holding talks with China’s XinAo Gas, Japanese Mitsubishi Corporation, and PTT of Thailand for the development of the Batman-2 Gas Pipeline. The Batman-2 Pipeline will traverse 150 km to link Bataan to Manila. The project also includes the construction of a 35 km spur line (known as the Batcave Pipeline) to industrial areas in Rosario, Cavite province, and a distribution network to serve potential gas users in the areas through which the pipeline passes.
The latest Philippines Oil & Gas Report from BMI forecasts that the country will account for 1.26% of Asia Pacific regional oil demand by 2015, while providing 0.55% of supply. In terms of natural gas, in 2010 the region consumed around 511.5bn cubic metres (bcm) and demand of 653.9bcm is targeted for 2015. Production of an estimated 405.8bcm in 2010 should reach 556.7bcm in 2015, implying net imports falling from around 105.7bcm to 97.2bcm. The Philippines' share of gas consumption in 2010 was an estimated 0.86%, while its share of production is put at 1.08%. By 2015, its share of gas consumption is forecast to be 0.87%, with the country accounting for 0.95% of supply. Between 2010 and 2020, we are forecasting a rise in the Philippines’ oil production of 7.8%, with crude volumes peaking at 50,000b/d in 2013 before falling steadily to 35,250b/d in 2020. The Philippines is now at sixth place in BMI’s composite Business Environment (BE) league table. The country ranks sixth, just ahead of Pakistan, in BMI’s updated upstream Business Environment ratings, reflecting a reasonable resource position and a better-than-average output growth outlook. The Philippines ranks 11th, between Vietnam and Hong Kong, in our downstream Business Environment ratings, reflecting the modest refinery capacity expansion plans, reasonable oil and gas demand growth outlook and relatively low level of retail site intensity.