A breath of fresh air

A breath of fresh air | Daily Tribune

Like a breath of fresh air amid the clutter of political strife and the deflating atmosphere brought on by the wave of corruption came the announcement of a natural gas discovery, the country’s first significant fuel find in 30 years.

The newly discovered reservoir, Malampaya East-1 (MAE-1), lies about five kilometers east of the existing Malampaya field and is estimated to contain around 98 billion cubic feet of gas in place.

The find is significant because it will extend the lifespan of the Malampaya project beyond 2028, as its new operator, Prime Energy, continues to explore other potential sites in the area.

MAE-1 has a tested output of 60 million standard cubic feet per day (MMSCFD) and could account for at least 30 percent of the main field’s current total daily output.

While MAE-1’s estimated output is smaller than the main Malampaya field’s production, its discovery is significant for offsetting decline and supporting near-term energy security.

President Ferdinand Marcos Jr. said the gas volume is equivalent to 14 billion kilowatt-hours of electricity per year, enough to supply power to around 5.7 million households, 9,600 buildings, or nearly 200,000 schools annually.

Natural gas is the fuel used by several power plants that supply electricity to the energy-hungry Luzon grid, which includes Metro Manila.

“We take great pride that this drilling is led by Filipinos. And they finished the job without accident or environmental incident,” Marcos said.

Energy Secretary Sharon Garin described the development as historic.

“So our Malampaya operations can be extended from 2027 by a few more years, into the 2030s, because we now have a new source. How much has been discovered? Quite a lot — though not as much as the original Malampaya — but enough for us to have energy security. Let’s give it time,” Garin said.

The current operator of the Malampaya natural gas project, under Service Contract 38, is Prime Energy Resources Development B.V.

The company is a unit of Prime Infrastructure Capital Inc., led by billionaire Enrique Razon Jr.

Prime Energy leads the consortium, which includes the state-owned Philippine National Oil Co. (PNOC)-Exploration Corp., and is actively managing ongoing developments, such as the Phase 4 drilling.

Garin revealed that three other wells are being drilled. She said the project was also significant because it takes five to 10 years to make an important discovery, followed by more time to develop it.

“This one, after less than a year of drilling since they started around January, they already made a discovery. In fact, that was late last year. They were just cautious and wanted to be sure that there was really gas and sufficient pressure,” Garin said.

“So there will be more. I think there are new prospects, including Pag-asa and Camago. So let’s wait a few months. I hope we get more good news because that will add to our resources,” she indicated.

The extension of the natural gas field’s life came at the right time, as the geopolitical situation worsens and uncertainty pervades, particularly in fuel supply.

Malampaya is indigenous, which means that whatever happens overseas, our energy security is guaranteed.