Malampaya gas deliveries rise as Luzon grid placed on alert status

Malampaya (Photo from Shell Philippines)

MANILA, Philippines—The Malampaya offshore field was able to deliver more than its target gas volume to key power plants as the Luzon grid was placed on red and yellow alert status by the National Grid Corporation of the Philippines (NGCP).

Prime Energy Resources Development B.V. (Prime Energy), operator of Service Contract (SC) No. 38 which governs the Malampaya project, said gas supply to customers peaked at 290 million standard cubic feet per day (MMSCFD). It exceeded the Malampaya wells’ current maximum capacity of 262 MMSCFD.

“When needed by the grid, Malampaya was able to reliably deliver even more,” said Donnabel Kuizon Cruz, managing director and general manager of Prime Energy.

“Malampaya was able to deliver on demand because all producing wells were available and there was sufficient reserve in the gas export pipeline,” Cruz said in a statement.

“The system reliability and availability of Malampaya in March was 100 percent,” she added.

Under a ret alert status, power supply is insufficient to meet consumer demand and the transmission grid’s requirement. A yellow alert status is issued when the operating margin is insufficient to meet the grid’s contingency requirement.

Malampaya supplies indigenous fuel to four gas-fired power plants in Batangas — Santa Rita, San Lorenzo, San Gabriel and Avion.

“We are committed to continue providing dependable domestic gas supply especially in grid alert scenarios that could affect millions of Filipinos in Luzon,” said Cruz.

Malampaya supplies 20 percent of Luzon’s electricity requirements.

Under an extension of SC 38, Prime Energy has committed to drill two deepwater wells in the Camago and Malampaya East fields and a third exploration well, Bagong Pagasa, approximately 15 kilometers north of Malampaya.

“Malampaya is playing absolutely a critical role in ensuring avoiding volatility, stability of gas prices, energy security,” Guillaume Lucci, Prime Infra president and CEO, earlier said in a television interview.

“We have just contracted the drilling vessel that will come in next year and drill three new wells: two development wells and one exploratory well,” Lucci said.

He said at least $750 to $800 million will be spent in the next two years to extend the life of Malampaya.