Prime Energy backs natgas expansion

Prime Energy, operator of the Malampaya Deep Water Gas-to-Power Project, has committed to sustaining exploration and production from domestic sources to strengthen the role of natural gas as a key driver of the Philippines’ energy independence and transition.

Speaking at a recent forum, Prime Energy president and CEO Donnabel Kuizon Cruz said indigenous natural gas complements the country’s renewable energy (RE) goals while ensuring stability in power supply and pricing.

A bridge that unifies industry

“In this era of energy transition, where risks are real and opportunities are emerging across a shifting power map, our task is clear: to make our very own Filipino gas a bridge that unifies the industry and serves as a force for good for Filipinos,” Cruz said.

“Apart from stabilizing the reliability and cost of generation, indigenous gas production is one of the government’s key revenue sources and economic enablers,” she added.

Since operations began in 2001, the Malampaya project has supplied up to 40 percent of Luzon’s energy demand and generated USD13.9 billion in revenues for the government.

Largest Philippines upstream investment

Under the Department of Energy’s (DoE) leadership, Prime Energy and its Service Contract (SC) 38 consortium partners — Prime Oil & Gas Inc., UC38 LLC, and state-owned PNOC Exploration Corporation — are advancing the USD893-million Malampaya Phase 4 project, the largest upstream investment in the Philippines in over a decade.

The project involves drilling three new wells — Camago 3, Malampaya East 1, and Bagong Pag-asa 1 — to extend the Malampaya gas field’s life and deliver new gas by 2026.

The Philippines aims to raise the RE share in its power generation mix to 30 percent by 2030 and 50 percent by 2040 under the Philippine Energy Plan.

Natural gas complements this shift as it balances intermittent RE sources and emits about 50 percent less carbon dioxide than coal-fired power.