Malampaya helps avert power crisis

Malampaya helps avert power crisis | Daily Tribune

When the full force of the electricity shortfall hit as 39 key power plants bogged down simultaneously on 16 April, the Malampaya offshore field was a steady source of power that greatly contributed to shortening the ordeal of brownouts.

Electricity demand has reached unseen levels in the past few days due to the record high temperature that prompted the maximum use of air conditioners and other cooling devices.

The Malampaya field was able to reliably deliver more than its export capacity as the Luzon grid was placed on red and yellow alerts on Monday by the National Grid Corp. of the Philippines (NGCP).

Prime Energy Resources Development B.V. (Prime Energy), operator of Service Contract (SC) 38 which covers the Malampaya project, said gas supply to customers peaked at 290 million standard cubic feet per day (MMSCFD) on the crucial day.

The total compares to the current maximum capacity of Malampaya wells at 262 MMSCFD.

Delivers when needed

“When needed by the grid, Malampaya was able to reliably deliver even more than export capacity. Malampaya was able to deliver on-demand because all producing wells were available and there was sufficient reserve in the gas export pipeline,” Donnabel Kuizon Cruz, managing director and general manager of Prime Energy said.

“The system reliability and availability of Malampaya in March was 100 percent. Malampaya has long maintained top-quartile reliability performance,” she added.

Under a red alert status, the power supply falls below the volume required to meet consumer demand and the transmission grid’s “regulating” requirement.

A yellow alert status meanwhile 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,” Cruz said.

The natural gas wells supply 20 percent of Luzon’s electricity requirements.

Prime Energy has committed to drill two Deepwater development wells in the Camago and Malampaya East fields, as well as 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 during 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. Bagong Pag-asa will be the exploratory well. We’ll be spending over $750 to $800 million (P44.8 trillion) over the next couple of years to try to extend the life of Malampaya as far as we can. It’s a very critical asset, of course, for the nation,” Lucci said.