President Marcos Jr. expects a more stable and cheaper energy supply in the country with the expanded development of Malampaya gas field and blending of imported liquified natural gas (LNG) to the current supply.
The President with executives of Prime Energy Resources Development B.V., led by Prime Infrastructure Capital Inc. chairman Enrique Razon Jr. in Malacanang on Tuesday night where the presented its plans to explore and develop indigenous gas prospects.
During the meeting, Prime Energy also disclosed plans to supplement the current indigenous gas production with LNG imports through a gas aggregation framework.
These moves will pave the way for the stability, competitiveness, and expansion of the country’s gas market.
The group also updated Marcos on the development of the nearby fields within Malampaya Service Contract 38 (SC 38), including the start of the drilling of two deep wells in the Camago and Malampaya East fields — which are in close vicinity to the existing Malampaya Platform – in the last quarter of 2024. Prime Energy is the operator of SC 38.
Prime Energy expects the additional production from the Malampaya field to start by the first half of 2026.
Prime Energy said it plans to import LNG to make up for shortfalls in Malampaya gas.
It added the blending of imported LNG with Malampaya gas will ensure stability of supply at a price below international rates.
The blended gas will be made available by Prime Energy and PNOC Exploration Corp. to all gas power plants at the same price.
“It seems that this gas aggregator idea is the key. Again, we have work to do,” the President said in response.
Marcos also affirmed the government’s commitment to ensure the stability of supply, affordability, transparency and competition in the Philippine natural gas market, especially with the introduction of imported LNG for the first time.
Meanwhile, in a separate venue, Energy Secretary Rapahel Lotilla, assured that the Malampaya consortium is on schedule in its work program which includes the drilling of two new wells.
“…We are on track to having the first drilling for the nearby fields by the end of 2024 and we are looking forward to new or additional supply from the same service contract by 2026,” Lotilla said during the Pandesal Forum in Quezon City yesterday.
Lotilla is hopeful this will encourage more investments in exploration in the oil and gas sector in the country.
The President in May this year signed the Renewal Agreement of SC 38 and extended the contract until February 2039. – Jocelyn Montemayor and Jed Macapagal
