Malampaya Phase 4 gets 'national significance' certification

Razon-led Prime Energy Resources Development B.V.’s plan to drill new deepwater wells at the Malampaya gas field has received a certification that would pave the way for faster regulatory approvals of the project.

In a statement on Wednesday, Prime Energy, the operator of the Malampaya natural gas facility, said the Malampaya Phase 4 project has secured the Energy Project of National Significance (EPNS) certification from the DOE.

EPNS refers to major energy projects that are in consonance with the policy thrust and implementation of the Philippine Energy Plan (PEP).

The certification allows for faster regulatory approvals of energy projects in the country, which is imperative in advancing energy security and overall nation-building efforts.

Malampaya Phase 4 entails the drilling of the Camago and Malampaya East production wells and the drilling of the Bagong Pag-asa exploration well.

The planned drilling and development would require an investment of more than $600 million.

For 2024 alone, the expenditure was estimated at $187 million, which would be spent on procurement of drilling equipment, subsea equipment and umbilicals, and pipelines, and securing the drilling rig.

''This certification reinforces Malampaya's crucial role in securing the Philippines’ energy future and highlights its national significance,” Prime Energy said.

The project is operated under Service Contract No. 38 (SC 38) in collaboration with consortium partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

The deepwater gas-to-power project is the country’s first and only indigenous gas resource off the province of Palawan.

“We are honored to receive the EPNS certification from the Department of Energy. This milestone reaffirms Malampaya’s importance in securing the Philippines’ energy future. As we advance with Phase 4, our focus remains on ensuring sustainable and reliable energy for millions of Filipinos,” said Prime Energy president and CEO Donna Kuizon Cruz.

Malampaya has contributed over $13.8 billion to the Philippine government since its commercial operations began in 2001.

It supplies about 20% of Luzon’s electricity needs and has significantly contributed to the nation's energy independence since 2001.

Prime Energy said Malampaya Phase 4 is a key initiative to extend the gas field’s life and sustain the country's energy requirements.

"The acceleration of Malampaya Phase 4 is critical to ensuring energy security and preventing potential power shortages in the future,” said Cruz.

“With the EPNS certification in place, Prime Energy and the all-Filipino consortium are committed to working closely with the government to meet the nation’s growing energy demands and ensure a more secure and sustainable energy future,” she added.

SC 38, which was originally set to expire in February 2024, was renewed until February 22, 2039, allowing the continued production from the gas field for another 15 years. — VBL, GMA Integrated News