NEWSFLASH

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$4.5-B GAS PALAWAN NATURAL GAS ACCORD SIGNED

El Nido, Palawan, Jan. 11, 1998 - Three agreements were signed yesterday in the presence of President Ramos, paving the way for the commercial operation of the vast natural gas finds at the Camago-Malampaya sound off the northern coast of Palawan.

President Ramos said the accords represent the single largest and most significant investment in the history of Philippine business, totalling $4.8 billion.

He also pointed out that the signing "can be taken as a clear sign of continued investor confidence in the Philippines."

The three are: 1. The Power Purchase Agreement for the Sta. Rosa Plant and Memorandum of Agreement for the supply of natural gas for First Gas Philippines' 500-megawatt power plant in the Calabarzon area. 2. Gas Sale and Purchase Agreement for KEPCO's 1,200 megawatt power plant in Batangas. 3. Gas Sale and Purchase Agreement for First Gas Philippines' 1,000 megawatt power plant in Sta. Rita, Batangas.

The president said the use of natural gas for power plants will result in lower electricity rates and savings of $2.2 billion.

He also pointed out the new job opportunities created by local and foreign private sector investments, and net foreign currency savings of $4.7 as the government's share in the development of the fields. Natural Gas as fuel will also benefit the environment because it is cleaner than the bunker oil and coal that traditional power plants use.

The major players in the natural gas development project are Shell Philippines Exploration BV and Occidental Petroleum Philippines, Inc.

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