Gov’t inspects Malampaya gas-to-water project

Government officials recently inspected the Malampaya deep water gas-to-power project in offshore Palawan to ensure the continuity of operations amid the projected shortage of electricity supply.

Enrique Razon-led Prime Infrastructure Capital Inc. (Prime Infra) said officials from the Department of Energy (DOE) and state-run Philippine National Oil Co. had conducted the site inspection and assessment to look into the gas platform’s overall condition and “ensure continued operations and sustainability.”

They checked the condition of the shallow water platform which, according to Prime Infra, processes the gas that will subsequently be exported through a 504-kilometer underwater pipeline.

“I am happy to have visited the Malampaya platform and to have met personally the all-Filipino professional team that has maintained the facility in good condition for the benefit of a generation of Filipinos,” Energy Secretary Raphael Lotilla was quoted as saying.

During the site visit on Dec. 8, Prime Infra reiterated its commitment to optimize the potential of Malampaya to ensure continuous production as long as the reserves can accommodate it.

Prime Infra president and CEO Guillaume Lucci said the company was working on the license extension for service contract 38 covering the gas-to-water project as it would lapse in 2024.

“We are at a critical time right now in our country’s energy transition. We aim to contribute by doing all that can be done to generate as much power as possible to keep up with the energy demands in Luzon. The most important thing to do for the company right now is to sustain and expand gas production while we address the license extension for SC 38,” said Lucci.

The DOE previously warned of a “difficult” power supply situation next year due to the unavailability of certain power plants, which could culminate in the declaration of several yellow and red alerts. Red alert means a supply deficiency exists that can lead to power interruptions, while yellow alert denotes a deficiency in power reserves.

Earlier, red and yellow alerts were raised in Luzon as many power facilities were offline or have reduced their generating capacity.

Prime Infra completed last month the acquisition of the Shell Group’s 45-percent controlling stake in Malampaya, which provides up to 20 percent of Luzon’s electricity requirements. This marked the Razon-held firm’s foray into the upstream energy market. Since operations commenced in 2001, the gas project has generated revenues amounting to $12 billion or over P1 trillion for the local government.