BUSINESS
Prime Midstream eyes VisMin expansion
The planned expansion would extend Prime Midstream’s reach beyond its existing operations in Batangas, where its liquefied natural gas terminal supports gas-fired power plants. The terminal is 60 percent owned by Prime Infra, while First Gen and Tokyo Gas hold 20 percent each.
Prime Midstream is looking to expand its natural gas supply business to the Visayas and Mindanao as it seeks to tap new markets beyond Luzon and widen its customer base outside the power generation sector.
Prime Midstream president and CEO Donnabel Kuizon Cruz said the company is exploring opportunities to bring natural gas to other parts of the country, targeting both power producers and industrial customers.
“We envision this as a supplier and distributor for all types of industries — be it for power generation or industrial uses and the like,” Cruz said Saturday.
The planned expansion would extend Prime Midstream’s reach beyond its existing operations in Batangas, where its liquefied natural gas (LNG) terminal supports gas-fired power plants.
The terminal is 60 percent owned by Prime Infra, while First Gen and Tokyo Gas hold 20 percent each.
Cruz said demand for natural gas remains strong as the country continues to require dependable electricity supply, particularly when renewable energy generation declines.
“We see ourselves being asked to deliver more than our capacity now, which means that very reliable and affordable power sources are still much needed,” she said.
“The effects of the El Niño and the continued market volatility are affecting our electricity prices. Gas-fired power plants must continue to operate in this manner,” she added.
Gas-fired power plants play a key role in meeting electricity demand during evening hours when solar generation drops, providing an alternative source of supply as the country expands its renewable energy capacity.
“In terms of the volatility of the market — of the prices — indigenous gas price is usually historically lower than LNG prices, be it spot or term LNG. So it helps to cushion the market price spikes that LNG experiences,” Cruz, who also serves as president and CEO of Prime Energy, said.
Prime Midstream’s LNG terminal complements indigenous gas from the Malampaya field, providing power plants in Batangas with greater flexibility in sourcing fuel amid fluctuations in global LNG prices.