Prime seeks natgas dev’t to stabilize cost
For LNG to take root as a trusted fuel source, it needs indigenous gas as a stable ground. Indigenous gas development must remain a bedrock of our energy policy
Daily TribuneFor LNG to take root as a trusted fuel source, it needs indigenous gas as a stable ground. Indigenous gas development must remain a bedrock of our energy policy
Prime Energy Resources Development managing director and general manager Donnabel Kuizon Cruz
To shield the country’s power prices from external shocks, stakeholders in the energy sector should prioritize the development of indigenous gas resources.
Prime Energy Resources Development managing director and general manager Donnabel Kuizon Cruz emphasized the importance of locally sourced natural gas in ensuring a reliable fuel supply, particularly in light of the power grid’s vulnerability to weather and other disruptions.
“Indigenous gas prices remain largely stable against these shocks and therefore cushion our electricity bills,” Cruz said at an energy forum organized by think tank Stratbase Institute on Tuesday.
Cruz also pointed out that indigenous gas projects should be in “synergy” with imported liquefied natural gas (LNG) to create power supply reliability and affordability.
LNG needs augmentation
“For LNG to take root as a trusted fuel source, it needs indigenous gas as a stable ground. Indigenous gas development must remain a bedrock of our energy policy,” she said.
Unlike Malampaya, which can withstand inclement weather, LNG floating storage and other facilities pause their gas supply as they get disconnected from their berths during strong winds and waves.
In April, when the heat wave prompted successive power alerts in the Luzon grid, Malampaya operated nearly 120 percent of its system capacity.
At that time, Malampaya delivered enough fuel to generate 2,000 megawatts, or about 20 percent, of Luzon’s total demand for electricity. It allowed consumers to save 50 centavos to P20 per kilowatt hour on their electric bills.
“Had there not been Malampaya gas during that time, Filipinos would have paid, on average, P25 per kilowatthour in fuel costs for using LNG, compared to only P6 per kilowatthour using Malampaya,” she said.
At the same forum, Energy Secretary Raphael Lotilla said pursuing a “robust natural gas strategy” remains part of the country’s energy security agenda.
“Successful exploration and production activities will not only contribute to the country’s energy security goals but also drive economic growth, create employment opportunities, and generate a revenue stream,” Lotilla said.
However, he noted that exploration and development of resources such as building necessary infrastructure will “certainly take time.”
Prime Energy, a wholly-owned subsidiary of Razon-led Prime Infra, operates the Malampaya Deep Water Gas to Power Project, the country’s first and only indigenous gas resource in the province of Palawan.
Service Contract 38, which governs Malampaya, was extended for another 15 years until February 2039.
