Sen. Sherwin Gatchalian yesterday said the country’s power situation could face “uncertainties” following reports businessman Dennis Uy of Udenna Corp. plans to sell his controlling stakes in the Malampaya deep water gas-to-power project.
“With the expiration of Malampaya’s service contract in 2024, the depletion of the remaining reserves in the gas field by 2027, and now the possible sale of participating interests of Udenna in the country’s most important energy source — there’s so much uncertainty ahead of us insofar as our energy security is concerned. Are we looking at rotational brownouts again?” Gatchalian said.
Gatchalian made the remark on reports that Uy is considering to sell 45 percent of Malampaya which he acquired from Chevron in March 2020 and the 45 percent purchased from Shell Philippines Exploration in May 2021.
Udenna’s Malampaya buyout hit a snag last December after the Philippine National Oil Company-Exploration Corp. (PNOC-EC), which owns 10 percent of Malampaya shares, withheld its consent to the transaction between SPEX and Udenna’s Malampaya Energy XP Pte. Ltd.
A critical energy asset, Malampaya powers more than four and a half million homes and businesses in Mega Manila alone or six out of every 10 customers in Meralco franchise area.
It contributes almost 20 percent of the entire country’s power generation mix.
Malampaya has also provided significant income to the government, totaling P290.76 billion from January 2002 until June 30, 2021.
