Gas production from the Malampaya deepwater gas-to-power project in northwest Palawan fell 20 percent this year to 96,804 million standard cubic feet from 121,089 mmcsf in 2021.
Data from the Department of Energy showed that Malampaya production had been steadily declining in the past years. Production reached 141,732 mmcsf in 2020.
The bulk of production went to the power sector at 84,192 mmscf this year.
Energy officials earlier said the depletion of the Malampaya reserves and decreasing reservoir pressure caused the decline.
Malampaya’s natural gas production is expected to decrease continually until the end of Malampaya field life in 2027.
The DOE issued DC 2017-11-0012, or the “Rules and Regulations Governing the Philippine Downstream Natural Gas Industry,” that would facilitate the entry of LNG terminals in the country to address the decline in natural gas from the Malampaya field.
It approved the permits of six proposed LNG regasification terminal projects, and two of them are expected to begin operations next year.
Total investment from these proposed LNG regasification projects is estimated at P51.2 billion.
The LNG facilities will provide the country with an aggregate capacity of 21.66 million tons per annum when completed.
Energy officials recently visited the Malampaya platform to assess its operations to ensure sustainability amid the power undersupply the country is facing.
The DOE visit to Malampaya on Dec. 8 was spearheaded by businessman Enrique Razon Jr.’s Prime Infrastructure Capital Inc. on behalf of the consortium and in partnership with the government as the new operator of Malampaya.
Prime Infra recently acquired a 45-percent operating stake in Malampaya through one of its subsidiaries, Prime Energy.
Prime Infra assumed full ownership and control of Shell Philippines Exploration B.V. on Nov. 1, 2022, after a successful transition process for a safe and seamless handover of operations.
The move marks the initial foray of Prime Infra into the upstream energy market.
Prime Infra committed to delivering outstanding operational performance and further the potential of Service Contract 38 covering the Malampaya project to ensure the continuity of gas production as long as the reserves can accommodate it.