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Shell, Chevron to Expand Malampaya Gas Project in Philippines

Royal Dutch Shell Plc (RDSA) and Chevron Corp. (CVX) are examining plans to expand the Malampaya natural-gas project in the Philippines.

The partners are negotiating the second and third phases of the project, which started pumping gas in 2001 to supply fuel for power generation at the Batangas plant.

They plan to “maximize the country’s clean energy resources” supply, Shell’s Chief Executive Officer Peter Voser told reporters on a conference call today.

The field, located in the province of Palawan, holds an estimated 2.7 trillion cubic feet of gas. The partners, which include the state-owned PNOC Exploration Corp. (PECB), may invest as much as $1.5 billion in the hunt for more reserves, Energy Secretary Rene Almendras said last week.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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