Malampaya Project Phase 3

Client: Shell Philippines Exploration B.V.

Location: Luzon, Philippines

Business Segment: Energy Solutions

Industry: Fuels

Services: Engineering and DesignProcurementConstruction

Map showing the location of Malampaya Project Phase 3

Executive Summary

Fluor provided engineering, procurement and construction support for Phase 3 of the Malampaya Deep Water Gas-to-Power project. The project was undertaken on behalf of the Philippine Government by the Service Contract 38 consortium composed of Shell Philippines Exploration B.V. (Operator), Chevron Malampaya LLC and Philippine National Oil Company-Exploration Corporation. This landmark project was among the most significant in the Philippines. Approximately 30% of the power for the main island of Luzon is generated by power plants using Malampaya gas. This new contract followed our successful completion of the front-end engineering and design (FEED) contract for Phase 3.

Client's Challenge

The Malampaya Phase 3 (MP3) project was the next phase of development for the Malampaya Deep Water Gas-to-Power Project. The depletion compression platform (DCP) was part of one of the most significant industrial endeavors in Philippine history and would be the largest energy source in the country. Installation of the new platform would maximize gas recovery from the reservoir and maintain the production level as reservoir pressure drops and gas is depleted.

The DCP is a self-installing platform with a production capacity of 5MMscfd, topsides weight of 4,300 tons and loadout weight around 12,000 tons. It is linked to the existing shallow water platform facilities for gas production.

Fluor's Solution

Shell's MP3 project involved the design, fabrication and installation of a new depletion compression platform linked by a bridge to the existing shallow water platform. We were responsible for the engineering and procurement for the new depletion compression platform as well as modifications required on the existing platform.

Additional Fluor responsibilities included engineering support and material management for onshore and offshore fabrication and preparation of work scopes for transportation and installation. The project was performed locally from our burgeoning full-service execution office in Manila.

Conclusion

The MP3 project created the country's first natural gas industry. Gas from Malampaya now fuels three power stations, meeting 30% of Luzon's power generation requirements with a combined capacity of 2,700 megawatts.

In addition, oil imports have been reduced, and a stable supply of energy and a clean source of power are available to the island of Luzon and the Philippines capital city of Manila. On Nov. 25, 2015, the MP3 project was named a Platts Engineering Project of the Year finalist for the organization's Global Energy Awards.