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Malampaya shutdown completed

Published Feb 20, 2023 12:54 pm

The two-week maintenance shutdown of the Malampaya gas production facility has been completed, without any untoward accidents at the work site, according to the Department of Energy (DOE).

“The works were completed with zero incidents recorded. This was achieved through diligent planning and execution by the operator, Prime Energy, in coordination with the DOE,” the agency said citing work completion this week.

This early, however, consumers are already being cautioned by affected power utilities – primarily those that have been drawing supply from the gas plants – to brace for highly probable rate hikes in next month’s billing, that to a great extent will be impacted by the February 4-18 repair downtime of Malampaya.

There are no definitive figures on the possible tariff adjustment yet, but the DOE previously indicated that a ‘no increase scenario’ may still have its chance once the electric bills are out.

This is the first time that the new operator, Razon-led Prime Energy, will be carrying out maintenance activities at the gas facility – that was after the closing of its shares acquisition from Shell Philippines Exploration B.V. (SPEX) and the subsequent turnover last November.

On the recently completed maintenance downtime, it was emphasized that “prior to the commencement of the work scope, the DOE together with Prime Energy, conducted numerous engagements with the stakeholder communities, local government units (LGUs) and other government agencies particularly in the vicinity of the onshore gas plant in Batangas.”

Upon its return to operation though, the users of fuel from the Malampaya field narrated that Prime Energy already advised of ‘gas curtailment’; hence, that entails need for liquid fuel from imported sources to fill the gap.

As reported to the DOE, the project operator commenced delivery of Malampaya gas to its various power plant-offtakers by 12:01 am on Sunday (February 19); which is well within the timeline set by Prime Energy.

As in previous maintenance shutdowns, the energy department conveyed that the Malampaya consortium also “tapped necessary international technical services to work with the Filipino team.”

In view of that, Energy Secretary Raphael P. M. Lotilla sounded off that he is looking forward to “the further upgrade of the technical capabilities available locally and the corresponding energy supply base facilities.”

Following this development, the next episode being awaited for the Malampaya field will be its 15-year license extension which is now under review by the Office of the President.

Related Tags

#MALAMPAYA #SHUTDOWN #RATEHIKE #DOE #PRIMEENERGY #LICENSEEXTENSION
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