Philippine National Oil Company(PNOC)

July 14, 2022 Dear Alena Mae, Thank you for your request dated Jul 14, 2022 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Status of sale of banked gas. We received your request on Jul 14, 2022 and will respond on or before Aug 04, 2022 01:09:02 PM, in accordance with the Executive Order's implementing rules and regulations. Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHgsSB0NvbnRlbnQiEVBOT0MtNDA4MTMzMjg3NTY1DA, for request with ticket number #PNOC-408133287565. Thank you. Respectfully, Ms. Katrine Arielle Bernabe-Alvarado FOI Officer

July 15, 2022 Dear Alena Mae, Thank you for your request dated Jul 14, 2022 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, on the status of sale of banked gas. Your Request: “As per your first half report, PNOC approved the GSPA with a new buyer of banked gas in June. Relative to this, may I ask the following: 1. Who is the buyer? 2. How big is the banked gas covered by the said GSPA? 3. When is the delivery date? 4. How big is the remaining banked gas after the sale? 5. How much was it sold for? 6. Was the sale advantageous to the government given the high cost of fuel today?” Our response: On June 23, 2022, the Philippine National Oil Company (PNOC) sold its remaining uncontracted banked gas through a Gas Sale and Purchase Agreement (GSPA) with South Premiere Power Corporation (SPPC). The banked gas is intended to supply the Ilijan Power Plant until full delivery of the total contract quantity on or before 23 February 2024. However, delivery has not commenced, as the SC38 Consortium and its operator, Shell Philippines Exploration B.V. (SPEX), have yet to heed the series of directives by the Department of Energy (DOE), requiring them to immediately resume the supply and maintain the allocation of natural gas minimum daily contract quantity of banked gas to the Ilijan Power Plant pursuant to the GSPA. The benefit to the government of the sale of PNOC’s remaining uncontracted banked gas is two-fold: first, it assures that PNOC’s remaining pre-paid banked gas, one of its biggest assets, will not be stranded and will be fully monetized; and second, it ensures the uninterrupted operations of Ilijan Power Plant, one of the largest natural gas power plants in country, and secures sufficient and affordable power supply in the Luzon grid. Your right to request a review: If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to Mr. Jesus Cristino P. Posadas, President and CEO, through postal address: Philippine National Oil Company, Building 6, Energy Center, Rizal Drive, Bonifacio Global City, Taguig 1634, Metro Manila, Philippines, or contact PNOC through telephone number: (+63 2) 87897662. Your review request should explain why you are dissatisfied with this response, and should be made within 15 working days from the date when you received this letter. We will complete the review and tell you the result, within 30 working days from the date when we receive your review request. If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011). Thank you. Ms. Maria Belinda L. Cubelo FOI Decision Maker