Natural gas buyers sought
Municipal officials of Alegria in southwest Cebu are looking for buyers of natural gas deposits found in barangay Montpellier.
Alegria Mayor Verna Magallon told reporters that China International Mining Petroleum Company Ltd. (CIMP) has discovered commercial quantities of natural gas in its Pit 2.
“Positive nga naay natural gas sa among Pit 2 (It’s positive. There’s natural gas in Pit 2),” she said. She did not elaborate on how vast the deposit is, but said they were still verifying the data.
Public scoping with stakeholders was conducted two weeks ago as part of the environmental review process for the issuance of an Environmental Compliance Certificate for the exploration project.
Engr. Jesus Ray “Tetu” Cavalida, municipal planning and development coordinator, said they have met with the environmental impact review assessment committee. They will undergo four more processes before they can secure the ECC.
Magallon said CIMP has been drilling for natural gas in her town since August last year.
The CIMP is a subsidiary of the Polyard Petroleum International Group (PPIG). The group has a 51 percent stake in the company, the PPIG website said.
The CIMP acquired an 80 percent stake in the participating interests of the SC49 project, which is the Alegria gas and oil exploration project, to become its operator last July 2009.
The SC49 contract approved by the Department of Energy covers a 25-year production period, according to PPIG.
Last Feb. 2, 2015, PPIG said, the Polyard 2 well successfully completed oil and gas testing operations. The well has tested gas with a daily production capacity of over 80,000 cubic meters. The PPIG said it will turn the well into a production well.
The Macau-based company has already applied for a production permit and plans to build a gas-fired power plant that could supply electric cooperatives such as the Cebu Electric Cooperative (Cebeco), she added.
In a previous interview, Magallon said the discovery of natural gas in Alegria would boost the local economy.
The government would get a 60-percent share of the revenues and more jobs are expected to be created.