President Ferdinand Marcos Jr. said he expects more stable and cheaper energy with the expanded development of the Malampaya gas field and the blending of imported liquified natural gas (LNG).
The Malampaya consortium, led by Prime Infrastructure Capital Inc. of businessman Enrique Razon Jr., is on schedule in its work program which includes the drilling of two new wells.
The President was briefed by Prime Energy Resources Development B.V.
(Prime Energy) on its plans to explore and develop indigenous gas prospects and supplement the current indigenous gas production with liquefied natural gas imports through a gas aggregation framework.
Razon led the presentation along with Prime Infra President and Chief Executive Officer Guillame Lucci, Senior Advisor Sebastian Quiniones and General Manager Donnabel Cruz.
“It seems that this gas aggregator idea is the key,” Mr. Marcos said during the meeting at the Palace.
The drilling of Prime Energy’s two deep wells will commence in the last quarter of 2024, with additional production from the Malampaya field expected to start by the first half of 2026.
Prime Energy also told the President about its plan to blend imported LNG to ensure stable supply and price.
The blended gas will be made available by Prime Energy and PNOC Exploration Corp. (PNOC-EC) to all gas power plants at the same price.
The President in May renewed the production contract for the Malampaya gas field in northwest Palawan, extending it for 15 years until Feb. 22, 2039.
He said the extension promises “monumental rewards for our country and our people.”
The Department of Energy said the extension of Service Contract 38, which was to expire on Feb. 22, 2024, would allow for the continued production of the gas field, ensuring that the remaining gas reserves are further explored and utilized.
The DoE recommended the renewal of the service contract, anchored on the commitment of the SC 38 consortium led by Prime Energy to actively explore and evaluate additional gas resources.
“The Malampaya asset will continue what it has started in operating this world-class installation for further exploration and utilization of the country’s remaining gas reserves, as well as open up the other potential near field areas for future production,” Razon said in a statement after the extension of the service contract.
Prime Energy, a subsidiary of Prime Infrastructure Capital Inc., is a natural gas exploration and development company. It is the operator and owner of a 45-percent operating interest in SC 38.