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Shell Denies Platform Repairs to Shut Gas Supply to Philippines

Bloomberg: Shell Denies Platform Repairs to Shut Gas Supply to Philippines

By Francisco Alcuaz Jr.

April 4 (Bloomberg) — Shell Philippines Exploration BV, a unit of Royal Dutch Shell Plc, denied newspaper reports that it will shut natural gas supply from an offshore field that supplies three power plants in the country while making repairs.

Newspapers were reporting the worst-case scenario that Shell had presented to the Department of Energy last week after finding a safety system malfunction at the Malampaya gas platform, Shell Spokesman Roberto Kanapi said in a phone interview today.

Shell has since informed the government that scenarios including a shutdown “did not materialize,” he said. “We’ll conduct a maintenance check this weekend. There’s no need for a shutdown.”

Manila Times and domestic newspapers today reported Shell may suspend operations at the offshore well. Three power plants, owned by First Gen Corp. and Korea Electric Power Corp., have a combined capacity of 2,700 megawatts, and receive gas from the Malampaya field.

To contact the reporter on this story: Francisco Alcuaz Jr. in Manila at [email protected].

Last Updated: April 3, 2008 22:43 EDT

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNI99Qv3xLiU

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