Malampaya gas project shows climate resilience
By Alena Mae S. Flores – May 29, 2024, 8:05 pm
from manilastandard.net
The Malampaya gas field, which powers 20 percent of Luzon through indigenous natural gas, demonstrated anew its reliability and resilience in times of natural disasters, as typhoon Aghon caused a substantial reduction in available power supply.
Prime Energy Resources Development B.V., operator of the Malampaya gas project, said Wednesday the facility remained 100-percent available to supply gas-fired power plants on demand during the onslaught of typhoon Aghon.
“Prime Energy and its partners in the Malampaya consortium remain committed to supporting the Department of Energy’s (DOE) drive to keep the grid stable by ensuring uninterrupted operations and fuel supply to power generators during extreme weather,” said Prime Energy managing director and general manager Donnabel Kuizon Cruz in a statement.
Prime Energy and its joint venture partners (UC38 LLC, PNOC Exploration Corporation, Prime Oil and Gas, Inc.) operate the Malampaya project under Service Contract No. 38 with the government.
Several baseload power plants were forced to shut down due to inability to operate under inclement weather recently.
The 1,200-MW Ilijan natural gas power plant lost its source of fuel—liquefied natural gas—as its floating storage unit (FSU) had to beunberthed and relocated for safety reasons while Pagbilao Units 1, 2, and 3, Masinloc, SPBL and Botocan coal-fired power plants with a total of 1,995 MW were also shut down due to the typhoon.
The significant loss of power capacity led to a call by Energy Secretary Raphael Lotilla to minimize the use of electricity in Luzon, following the red alert notice of the National Grid Corporation of the Philippines (NGCP).
The world-class Malampaya infrastructure is designed to operate safely in adverse weather conditions, demonstrating its unique capability to consistently supply gas to power plants and help assure Filipino consumers of stable and reliable electricity, regardless of the weather.
“Malampaya will always be ready to provide reliable natural gas. This situation demonstrates the critical role Malampaya plays in the nation’s energy security,” said Cruz.
The Malampaya gas project exceeded its normal supply capacity to enable maximum power generation from its customers during the peak of yellow and red alerts in April.
Prime Energy, a wholly owned subsidiary of Prime Infrastructure Capital, Inc., is set to inject up to $800 million to extend the life of Malampaya by drilling two Deepwater development wells in the Camago and Malampaya East fields, as well as a third exploration well, Bagong Pagasa.
The Malampaya project supported the Philippines’ energy security, generated significant revenues of more than $13.5 billion for the government, and made significant contributions to stakeholder communities through sustainable social and environmental programs in more than two decades of operation.
