Malampaya contribution to gov’t revenue: $13B
MANILA, Philippines—The Malampaya deep water gas-to-power project has remitted $13 billion to the national government since inception, the operator of the gas field said on Wednesday (Feb. 8).
“The SC (service contract) 38 has generated and remitted to the Philippine government some $13 billion since its inception,” said Prime Infrastructure Capital Inc. (Prime Infra) president and CEO Guillaume Lucci at the Powertrends International Business Forum held on Wednesday.
The Malampaya gas field is operated through SC 38 granted to the consortium of Prime Energy Resources Development B.V. (Prime Energy)—a subsidiary of Razon-led Prime Infra—UC38LLC and state firm Philippine National Oil Company-Exploration Corp. (PNOC-EC).
Lucci said the consortium remains committed to ensuring gas supply from the depleting Malampaya gas field.
“We’re here to stay, we’re here to invest, we’re here to increase dramatically the gas production with the extended term of the service contract and resource available and, more importantly, we are trying to make sure we produce the least cost to consumers,” he said at the forum.
The Malampaya project is one of the country’s most important power assets, as it produces natural gas for power plants in Batangas City that account for around 20% of the Philippines’ total electricity requirements. It began operations in 2001, with the consortium’s license for the project set to expire in 2024.
The SC38 consortium is seeking to extend the license to accelerate investments on the Malampaya gas field and improve the output of existing wells and develop nearby gas fields.
“Our drop-dead day to produce new gas or new well is first quarter of 2026 and we hope we can actually accelerate that as much as possible while doing it safely and reliably,” Lucci said.
Michael Sinocruz, Department of Energy (DOE) director for energy policy and planning, said at the forum that the review of SC 38’s extension is ongoing. “We are reviewing it for final approval,” he said.
Energy Secretary Raphael Lotilla had acknowledged that the ongoing review is crucial to the country’s energy security as the “present Malampaya-Camago field is a finite one.”
The Malampaya asset is a significant addition to Prime Infra’s growing energy portfolio as it reduces the country’s reliance on imported fuel.
Prime Infra’s investment in the expansion of Malampaya operations will also be critical in providing the infrastructure for the development of natural gas in the area, one of the key points in the Marcos administration’s energy agenda.
“The objective really is to produce gas, and ensure we have the least cost of gas in the country. We have a deep motivation to ensure that,” said Lucci.
TSB
