Sunday, August 11, 2013

Natural Gas Central to China vs Philippine Dispute over Panatag and Ayungin Shoals (20 TCF)

The China watch _ Opinion, The Philippine Star /...China continues to claim two Philippine-held areas: the Panatag Shaols located only 124 nautical miles from Zambales and the Ayungin Shaol located only 106 nautical miles from Palawan. ...Whoever controls Ayungin can control the path to the Recto Bank. According to a Philex Petroleum report released last year, a seismic survey of the Recto Bank indicates probable reserves of 4.666 trillion cubic feet of natural gas. A survey by Forum Energy of London has noted that another interpretation of the same data by Weatherford Petroleum Consultants said the prospective reserves could reach as high as 16.612 to 20 trillion cubic feet of natural gas.The Philippines presently has only one domestic source of natural gas which is Malampaya located northeast of the Recto Bank. Malampaya, at the start of operations in 2002, had natural gas reserves of 3.7 trillion cubic feet. It was scheduled to provide gas supply for 20 years to power plants with a capacity of 2,700 megawatts. In ten years Malampaya will run out of natural gas.