Re-positioning to be in the entire chain of the gas or energy business, state-run affiliate Philippine National Oil Company-Exploration Corporation (PNOC-EC) bared plans of cornering additional gas supply from the Malampaya gas field for its proposed 300-megawatt power plant project.

The Malampaya consortium, according to PNOC-EC chairman Jacinto Paras, will auction additional gas volume from the field around September this year.

The bidding for the additional gas that can be extracted from the Malampaya field has long been awaited by power project developers.

With legislative proposals on electricity rate reduction threatening to re-open contractual arrangements at Service Contract 38 though, it was noted that efforts at extracting the additional gas volume may be hobbled.

If and when that gas is scheduled for auction, the state-run company is poised to give competitors a tough challenge as it studies prospects of securing the deal.

“We will put up a power plant which will use that gas supply equivalent to 300 megawatts, that is if we win the bidding,” Paras noted.

PNOC-EC’s interest in a power facility is aligned with plans to integrate it with the propounded 100-kilometer Batangas-Manila (BatMan) high pressure gas pipeline.

“We need this (power project) to support the implementation of our project which is putting up a pipeline,” he said.

The company though is receptive to prospects of engaging a joint venture for the proposed facility, primarily to spread risk on project financing.

“A power plant project is expensive, so we might entertain a partner. We don’t have anyone definite, but we’re getting a lot of offers,” noted Paras, saying in jest that the number of suitors knocking at its investment door  could be around 10.

Depending on the supply-demand scenario at the project’s construction, the PNOC-EC chair stressed that its planned capacity may be downscaled to 200 megawatts.

“We’re in the final stage of our study and we’re just looking at the costing, the technical aspects of the power plant, and so on and so forth,” Paras said.

As far as equipment sourcing, Paras indicated that they are looking at market closer to home – possibly China; and is similarly pining hope that this would be able to offer a cheaper option.