The Malampaya offshore field was able to reliably deliver more than its export capacity as the Luzon grid was placed on red and yellow alerts by the National Grid Corporation of the Philippines (NGCP).
Prime Energy Resources Development B.V. (Prime Energy), operator of Service Contract (SC) No. 38 which governs the Malampaya project, said gas supply to customers peaked at 290 million standard cubic feet per day (MMSCFD). This exceeds the current maximum capacity of Malampaya wells at 262 MMSCFD.
“When needed by the grid, Malampaya was able to reliably deliver even more than export capacity. Malampaya was able to deliver on demand because all producing wells were available and there was sufficient reserve in the gas export pipeline,” said Donnabel Kuizon Cruz, managing director and general manager of Prime Energy.
“The system reliability and availability of Malampaya in March was 100%. Malampaya has long maintained top-quartile reliability performance,” she said.
Under a red alert status, power supply is insufficient to meet consumer demand and the transmission grid’s regulating requirement. A yellow alert status meanwhile is issued when the operating margin is insufficient to meet the grid’s contingency requirement.
Malampaya supplies indigenous fuel to four gas-fired power plants in Batangas—Santa Rita, San Lorenzo, San Gabriel and Avion.
“We are committed to continue providing dependable domestic gas supply especially in grid alert scenarios that could affect millions of Filipinos in Luzon,” said Cruz.
Malampaya supplies 20 percent of Luzon’s electricity requirements.
Prime Energy has committed to drilling two deepwater development wells in the Camago and Malampaya east fields and a third exploration well, Bagong Pagasa, about 15 kilometers north of Malampaya.
“Malampaya is playing absolutely a critical role in ensuring avoiding volatility, stability of gas prices, energy security,” said Prime Infra president and chief executive Guillaume Lucci in a TV interview.
“We have just contracted the drilling vessel that will come in next year and drill three new wells: two development wells and one exploratory well. Bagong Pag-asa will be the exploratory well. We’ll be spending over $750 [million] to $800 million over the next couple of years to try to extend the life of Malampaya as far as we can. It’s a very critical asset, of course, for the nation,” said Lucci.