Prime Energy Resources Development B.V., operator of the Malampaya gas-to-power project, said the passage of the proposed Natural Gas Industry Development Act would help keep the drilling of new indigenous gas wells on track as the law will create a legal and regulatory framework for the development of the national gas industry.
Donnabel Kuizon-Cruz, Prime Energy general manager, said the measure would protect consumer rights as it encourages transparency and competition in the gas industry.
“…we believe it is very timely and relevant… We have to continue exploring for new gas and we will need LNG (liquefied natural gas) to fill in the gap,” said Cruz, in a statement.
“If we have a bill that allows us to import in a way that there is the purview of the government on how much the price will be, how the industry will collaborate, then we can do that in a way that all are protected,” Cruz said at a Senate hearing last Thursday.
Cruz said production from Malampaya is dwindling which brings the urgent need to explore and develop more indigenous gas sources.
Prime Energy earlier reported that Malampaya’s output exceeded targets with sales in the second quarter exceeding 280 million standard cubic feet per day against a target of 274 million.
Prime Energy holds a 45 percent operating stake in the Malampaya consortium and has committed to drill at least two deep-water wells from 2024 to 2029 that is expected to unlock the potentials of both the existing gas field and nearby areas.
