Malampaya gas delivery resumes after successful maintenance work
By Alena Mae S. Flores – February 20, 2023, 8:55 pm
from manilastandard.net
The delivery of Malampaya natural gas to major power plants in Batangas province resumed past midnight on Feb. 19, two weeks after the successful maintenance work on the platform now operated by Prime Energy Resources Development B.V., a subsidiary of Prime Infrastructure Capital Inc. led by businessman Enrique Razon Jr.
Prime Energy and the other members of Service Contract 38 Consortium―UC38 LLC and PNOC-Exploration Corp.―successfully completed the maintenance work on the Malampaya system from Feb. 4 to 18.
Energy Secretary Raphael Lotilla welcomed on Monday the completion of the maintenance work, which was regularly carried out for the last 20 years, but for the first time, under an all-Filipino consortium in 2023.
The Department of Energy said the maintenance work was completed with a perfect safety record―with zero accident―achieved through diligent planning and execution by Prime Energy, in coordination with the DOE.
Prior to the work, the DOE and Prime Energy conducted a series of dialogs with the stakeholder communities, local government units and other government agencies, particularly in the vicinity of the onshore gas plant in Batangas province. This was to raise awareness about the work, especially flaring.
The SC 38 Consortium tapped an international technical team to work with Filipinos involved in the maintenance mission.
Lotilla said he looked forward to the further upgrade of technical capabilities locally and the energy supply base facilities of the Malampaya deep water gas-to-power project, which had remitted $13 billion to the national government since its inception.
Prime Infra president and chief executive Guillaume Lucci said the consortium remained committed to ensuring gas supply from the depleting Malampaya gas reserves.
“We’re here to stay, we’re here to invest, we’re here to increase dramatically the gas production with the extended term of the service contract and resource available and, more importantly, we are trying to make sure we produce the least cost to consumers,” he said in a recent energy forum.
The Malampaya project is one of the country’s most important power assets, as it produces natural gas for power plants in Batangas City that account for around 20 percent of the Philippines’ total electricity requirements.
It began operations in 2001, with the consortium’s license for the project set to expire in 2024.
The SC 38 Consortium is seeking to extend the license to accelerate investments in the Malampaya gas field and improve the output of existing wells and develop nearby gas fields.
“Our drop-dead day to produce new gas or new well is first quarter of 2026 and we hope we can actually accelerate that as much as possible while doing it safely and reliably,” Lucci said.
Lotilla earlier acknowledged that the ongoing review is crucial to the country’s energy security as the “present Malampaya-Camago field is a finite one.”
The Malampaya asset is a significant addition to Prime Infra’s growing energy portfolio as it reduces the country’s reliance on imported fuel and helps drive economic productivity and industrial growth.
Prime Infra’s investment in the expansion of Malampaya operations will also be critical in providing the necessary infrastructure to support the development of natural gas in the area, one of the key points defined in the Marcos administration’s energy agenda.
“The objective really is to produce gas and ensure we have the least cost of gas in the country. We have a deep obligation to ensure that,” said Lucci.
