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Sunday, April 11, 2021 Vol. 16 No. 179
P25.00 nationwide | 2 sections 12 pages | 7 DAYS A WEEK
BENEATH THE SEA
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By Manuel T. Cayon
ULU Sea’s huge natural gas deposit has remained untapped to this day as the country is expected to see the depletion of its active and main natural gas mine in the Malampaya deep, the sea wells off Palawan, and as the South China Sea debacle has stalled future exploration and drilling for natural gas in the area. The Department of Energy’s record has indicated a deposit that could fuel the power needs of Mindanao and some parts of the country for the next 20 to 30 years, according to an applicant to drill and extract it. But until when government gives the green light is anyone’s guess while the energy sector hobbles between developing dirty coal
sources as the base load and promoting renewable, but small-scale, energy sources, to hopefully tip the balance in the future in favor of the so-called clean energy. Lying just offshore, although in the still troubled Sulu islands, are natural gas deposits estimated to be between three and five million tons, according to Graham Elliott, executive director of
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Energy World Corp. (EWC), who manages the company with nine power plant and natural gas explorations in the Philippines, Indonesia and Australia. If tapped soon, the country has the option to solely use the NG deposits for domestic power need than to export it to other countries, he said. Elliott said the wealth of information at the DOE’s archives and the discovery of the deposits would help shorten the usually long gestation of the project, from the long exploration and then the construction of offshore and land drilling facilities, including the laying of pipelines. Dr. Amildasa D. Annil, DM, facilitator and coordinator of the Energy World International Ltd., said natural gas deposits in the Sulu area have been discovered on Lugus Island, about 32 miles southwest off the provincial capital of Jolo, and on Pearl Bank, another islet farther west of Lugus. The EWC said voluminous DOE records indicate that the natural gas deposit in the area would be “good for 3,000 to 5,000 megawatts of power for 20 to 30 years.”
Because of the discovery and initial explorations undertaken by previous companies, Elliott said the company may only need to re-drill some wells as well as find new wells, and to replace some pipelines, from the Pearl Bank to Lugus Island. In its plan, the EWC would establish the LNG power plant in Barangay Parian Kayawan on Lugus Island, where there would also be some drillings. The EWC had filed in 2017 its application of intent to undertake the project of exploration and extraction of oil and natural gas in the Sulu area. Elliott said there were continued discussions with the DOE “because we have also the natural gas terminal hub and gas-fired power plant in Pagbilao, Quezon.” “So the Sulu project has been part of our discussion,” he added. “I am not saying that someone has been delaying the project,” he clarified though. According to Elliott, their Pagbilao liquefied natural gas hub terminal, the first in the country, and 650-megawatt combined cycle gas fired power plant, had also met
some delays since getting the DOE endorsement in 2011. Earlier reports cited right-of-way issues. The entire construction, already 80 percent complete, ground to a halt because of an unfinished substation. In November 2018 the project was certified as an Energy Project of National Significance by the DOE. The Sulu Sea project would be EWC’s third natural gas exploration and power plant project in the Philippines. Of this, he said, “I understand that the DOE was working out jurisdiction issues” with the Bangsamoro Autonomous Region in Muslim Mindanao, as well as tackling existing laws about the explorations.
3-legged stool
FOR a major national building project like this natural gas exploration, to proceed smoothly, three important things must work out seamlessly, he said. “One leg is the investor, like us, which brings in the money, the technology and the knowhow. The other leg is the local
GAGARYCH | DREAMSTIME.COM
LNG firm awaits Palace’s green light to tap Sulu Sea’s natural gas
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ying just offshore, although in the still troubled Sulu islands, are natural gas deposits estimated to be between three and five million tons, according to Graham Elliott, executive director of Energy World Corp., who manages the company with nine power plant and natural gas explorations in the Philippines, Indonesia and Australia.
Continued on A2
n JAPAN 0.4423 n UK 66.7580 n HK 6.2396 n CHINA 7.4235 n SINGAPORE 36.2291 n AUSTRALIA 36.9615 n EU 57.6646 n SAUDI ARABIA 12.9533
Source: BSP (April 8, 2021)