Accelerating the development of indigenous resources will address the energy trilemma of sustainability, security, and affordability, Prime Energy said, adding that natural gas is more than just a transition fuel, but a transformative one.
Prime Energy president and chief executive Donnabel Kuizon Cruz spoke at the Norway-Philippines LNG Summit 2024 on Nov. 11, saying that while renewable energy plays an important role in the country’s future, natural gas is essential to bridging the gap to a low-carbon economy, offering both reliability and price stability.
Prime Energy, a wholly owned subsidiary of Razon-led Prime Infra, is the operator of the Malampaya gas field, the only indigenous gas source in the Philippines.
“I stand with the Department of Energy’s [DOE] answer: implement a balanced Philippine Energy Plan where renewable energy capacity grows alongside natural gas as a transformative –not just transition—fuel, and to accelerate the development of indigenous resources,” Cruz said.
“The country’s massive buildup of intermittent renewable energy capacity over the next 20 years will require natural gas to fuel mid-merit baseload power generators that will maximize renewables capacity, keep power supply reliable, and stabilize the cost of electricity,” she said.
She said “indigenous gas is the answer” to reduce our reliance on the global market, pointing out that its price stability helps reduce the impact of fluctuating imported fuel costs.
Indigenous gas also generates revenue for the Philippine government, supporting funding for energy projects. The Malampaya consortium has remitted $13.8 billion in revenues to the government.
“Indigenous gas is the bedrock from which our natural gas industry can take root and expand. But we must recognize that indigenous gas and LNG are two parts of a whole that we call ‘natural gas’. One simply cannot thrive without the other. And we need natural gas. It is the way to transition to our energy future,” Cruz said.
“In this future, no one is left behind – by high electricity prices, by brownouts, or by the devastation of droughts and floods. This is the future that all of us in Prime Energy are committed to creating,” she said.
With the renewal of Service Contract 38 (SC 38) and under the guidance of the DOE, efforts are underway to extend the life of Malampaya through Malampaya Phase 4 dubbed as Project Sinagtala.
“The wells will produce new gas in 2026 – just 3 years after the SC38 contract renewal…This is a rare feat in such complex deepwater terrain as ours, but it can be done. It is a testament to our team’s world-class capability and innovative mindset; and equally importantly, a testament to the active support of the government and our consortium partners in making this work possible,” Cruz said.
Malampaya is a national government project under the Department of Energy. Prime Energy and its joint venture partners (UC38 LLC, PNOC Exploration Corp., Prime Oil and Gas Inc.) operate the Malampaya project under Service Contract No. 38.
