Philippines Urged to Collaborate with China on Delayed Gas Project

PXP Energy Corp. Considers Partnership with China for South China Sea Gas Field Development

PXP Energy Corp., a Philippine-based company, is exploring the possibility of partnering with China to develop the Reed Bank gas field in the South China Sea. The area is subject to competing maritime claims between the two nations, which have led to tensions and ship clashes in the past.

According to Manuel Pangilinan, Chairman of PXP Energy Corp., the company requires $6 billion in capital to develop the Reed Bank, a cost that the company cannot afford. He suggests that partnering with China or another experienced entity is necessary to proceed with the project. PXP Energy Corp. has been on hold with its exploration work in the Reed Bank due to the ongoing tensions between Manila and Beijing.

PXP Energy Corp. is seeking to address the country's energy supply concerns, as the main Malampaya gas field is nearing depletion. The recent discovery of a new gas source in the area will help extend the life of the Malampaya field, but additional energy sources are needed to meet the country's growing power demand.

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The Philippine government will have the final say on the matter, with PXP Energy Corp.'s position relayed to the authorities. Manuel Pangilinan noted that the decision is caught up in geopolitics, which is beyond the company's control.