Philippine-owned corporation discovers gas in Isabela: Commercial viability to be determined

The Department of Energy confirms that Philippine National Oil Company–Exploration Corporation (PNOC-EC), a government corporation, has successfully discovered natural gas at Mangosteen-1 well part of Service Contract 37-Cagayan Basin in Santiago City, Isabela. The state corporation will now determine the commercial viability of the said discovery.

“PNOC-EC has informed the DOE of its discovery of natural gas in its Santiago City Service Contract last July 2, 2015,” Director Patrick T. Aquino from the Office of the Secretary at DOE told Ang Malaya Net.

Service Contract 37, an onshore block located in the southern part of the Cagayan Basin covering an area of 360 square kilometer, is fully owned and operated by state-run PNOC-EC.

After the discovery, the next step is to confirm the volume of gas. “PNOC-EC is in the process of confirming the volume and commercial viability of pursuing the project,” the Director at Energy Department said.

Asked if the said discovery will compliment the Malampaya and when can the country fully benefit from the gas find, he said “until we determine the volume, it is too early to state the potential benefits.”

Director Aquino was answering in behalf of DOE Officer-in-Charge Zenaida Y. Monsada. Undersecretary Monsada will be heading the department as OIC until the end of current administration after Secretary Jericho Petilla’s resignation took effect Friday, July 3.

PNOC-EC said “the San Antonio gas field, which was in production from 1994 to 2008 and was supplying the fuel requirement of the 3 MW San Antonio Power Plant, is within said block.”

“Although modest in size, the 3 MW power plant was the first gas-powered plant in the Philippines and signalled the birth of the natural gas industry in the country,” PNOC-EC added.

“We are extremely confident of finding the country’s next gas field that can provide an additional 100 megawatts of energy using clean natural gas,” PNOC-EC chairman Gemiliano Lopez Jr. said as quoted by Inquirer.net.