Malampaya natural gas plant. Source: https://malampaya.com/
MANILA, Philippines—PRIME Energy Resources Development B.V., operator of the Malampaya Deepwater Gas to Power project, has expressed support for Senate Bill 152, which seeks to create a legal and regulatory framework for the development of the Philippines’ gas industry.
Donnabel Kuizon-Cruz, Prime Energy general manager, said the proposed Natural Gas Industry Development Act would help keep the drilling of new gas wells on track.
She said it would also protect consumer rights by encouraging transparency and competition in the gas industry.
“I’d like to convey our full support to this and we believe it is very timely and relevant,” said Cruz at a Senate hearing on the bill.
“We have to continue exploring for new gas and we will need LNG (liquefied natural gas) to fill in the gap,” she said.
Prime Energy, which holds a 45 percent operating stake in the Malampaya consortium, has committed to drill at least two deep-water wells from 2024 to 2029.
“After more than 20 years , production from Malampaya is dwindling and there is an urgent need for us now to explore and develop a more indigenous gas sources,” said Cruz at the hearing.
“We are embarking on projects to do that but we will need time to do that,” said Cruz.
Prime Energy has partnered with First Gen Corp. for a gas aggregation framework that would put in place an orderly system of gas distribution.
The partnership would have the Razon-led firm lease and operate liquefied natural gas (LNG) terminals of First Gen as part of the gas aggregation plan.
Supply of gas to power plants would be rationalized under the gas aggregation plan, which was seen to result in stable rates for consumers.
In her Senate testimony, Cruz said SB. 152 would be key to this happening.
“W believe this will enable a stable, clear and predictable regulatory framework that protects the interest, both of the investor and consumers,” Cruz told senators.
She said the bill’s enactment into law would “hopefully pave the way for a stable and competitive market where we will thrive and allow collaboration of all sectors involved.”
Prime Energy had reported that output at Malampaya went beyond targets with sales in the second quarter exceeding 280 million standard cubic feet per day against a target of 274 million.
President Ferdinand R. Marcos Jr. had approved the renewal of Service Contract 38 for Malampaya, extending the project for 15 years or until Feb. 22, 2039.