Gov't sees stable, cheaper energy due to expanded development of Malampaya gas field

The Philippine government is seeing a more stable and cheaper energy due to the expanded development of the Malampaya gas field and the blending of imported liquified natural gas.

President Ferdinand "Bongbong" Marcos Jr. had a meeting with Prime Energy Resources Development B.V. (Prime Energy) in Malacañang on Tuesday.

They discussed the plans to explore and develop indigenous gas prospects; supplement the current indigenous gas production with liquefied natural gas  imports through a gas aggregation framework; and enable the stability, competitiveness, and expansion of the country’s gas market.

“It seems that this gas aggregator idea is the key. Again, we have work to do,” Marcos said.

Meanwhile, Prime Energy, the operator of Service Contract 38 (SC 38), also briefed the President on the progress made in the development of the nearby fields within Malampaya Service Contract 38.

The drilling of Prime Energy’s two deep wells will commence in the last quarter of 2024, with additional production from the Malampaya field expected to start by the first half of 2026. 

The President, for his part, welcomed the drilling schedule for SC 38, according to the Presidential Communications Office.

Further, Prime Energy also told Marcos about its plan to import LNG to make up for shortfalls in Malampaya gas.

An added feature is the blending of imported LNG with Malampaya gas to ensure stability of supply at a price below international prices, the PCO said.

The blended gas will be made available by Prime Energy and PNOC Exploration Corp. to all gas power plants at the same price. —KG, GMA Integrated News