Marcos renews commitment to PH energy security
Published May 15, 2023 05:14 am
President Ferdinand "Bongbong" Marcos Jr. has renewed his administration's commitment to ensuring energy security in the country [as he signed the renewal agreement for the Malampaya Deep Water Gas-to-Power Project](https://mb.com.ph/2023/5/15/marcos-signs-malampaya-sc-renewal-agreement).
*President Ferdinand ‘Bongbong’ Marcos Jr. (Yummie Dingding/PPA Pool)*
Marcos said this during the signing ceremony for the Renewal Agreement for the Malampaya Service Contract No. 38 (SC 38), which renewed Malampaya's production contract for its final 15 years. It was supposed to expire on Feb. 24, 2024. In his speech, the President said the government optimistically looks forward to the continued production and utilization of the remaining reserves of the Malampaya gas field and further exploration and development of its untapped potential. "As I sign this SC (Service Contract) 38 renewal agreement, we also lay stress on the administration's commitment to actively pursue the exploration, development, and utilization of the country's indigenous energy resources and to optimize our energy mix," he said. He added that the Malampaya Project would reduce the country's dependence on oil imports and ensure a more stable supply of cleaner energy from an indigenous source. Meanwhile, President Marcos expressed confidence in the capability and competence of the SC38 Consortium in handling the Project. He also called on the Department of Energy (DOE) to ensure that the Project's implementation is strictly monitored and that the Consortium's goals align with the country's national interests. Considering the projects as the key to the administration's drive towards energy security, the Chief Executive said it is also consistent with the Constitution and the State policy of hastening the discovery and production of the country's indigenous petroleum. For his part, Energy Secretary Raphael Lotilla welcomed the renewal of SC 38, saying the department has "meticulously evaluated" the Consortium. "The assessment encompassed legal, technical, and financial capabilities and confirmed the Consortium's capacity to sustain the production operations and meet its obligations under the Renewal Agreement," he said. "Through the stringent due diligence observed, the government aims to uphold responsible and sustainable energy practices while effectively managing the valuable resource that is the Malampaya gas field," he added. Because of the contract renewal, President Marcos said the government would continue to generate revenues from the Project through a favorable sharing scheme. At the same time, the President expressed gratitude to the administration's partners in the private sector for keeping faith in the government's resolve. "Through our strategic partnerships, we will remain on course towards the attainment of our goals of total electrification of our country and of energy adequacy, reliability, and affordability, all for the betterment of the lives of the ordinary Filipinos," he said. From the discovery of the gas field more than three decades ago and the Project's commissioning in 2001, the Malampaya Deep Water Gas-to-Power Project has been a boon to the Philippines, providing 20 percent of Luzon's energy requirement. Through the Project, the government generated P374 billion in revenues. In 2022 alone, the Project yielded about P26 billion in government revenues. The Malampaya Deep Water Gas-to-Power Project utilizes state-of-the-technology to extract natural gas and condensate from the depths of the Palawan basin. It will then process the gas in the nearby shallow water production platform and transport it across three provinces through a 504-kilometer underwater pipeline. An onshore gas plant in Batangas receives the gas for further processing before it is sent to five power-plant customers for power generation.
*President Ferdinand ‘Bongbong’ Marcos Jr. (Yummie Dingding/PPA Pool)*
Marcos said this during the signing ceremony for the Renewal Agreement for the Malampaya Service Contract No. 38 (SC 38), which renewed Malampaya's production contract for its final 15 years. It was supposed to expire on Feb. 24, 2024. In his speech, the President said the government optimistically looks forward to the continued production and utilization of the remaining reserves of the Malampaya gas field and further exploration and development of its untapped potential. "As I sign this SC (Service Contract) 38 renewal agreement, we also lay stress on the administration's commitment to actively pursue the exploration, development, and utilization of the country's indigenous energy resources and to optimize our energy mix," he said. He added that the Malampaya Project would reduce the country's dependence on oil imports and ensure a more stable supply of cleaner energy from an indigenous source. Meanwhile, President Marcos expressed confidence in the capability and competence of the SC38 Consortium in handling the Project. He also called on the Department of Energy (DOE) to ensure that the Project's implementation is strictly monitored and that the Consortium's goals align with the country's national interests. Considering the projects as the key to the administration's drive towards energy security, the Chief Executive said it is also consistent with the Constitution and the State policy of hastening the discovery and production of the country's indigenous petroleum. For his part, Energy Secretary Raphael Lotilla welcomed the renewal of SC 38, saying the department has "meticulously evaluated" the Consortium. "The assessment encompassed legal, technical, and financial capabilities and confirmed the Consortium's capacity to sustain the production operations and meet its obligations under the Renewal Agreement," he said. "Through the stringent due diligence observed, the government aims to uphold responsible and sustainable energy practices while effectively managing the valuable resource that is the Malampaya gas field," he added. Because of the contract renewal, President Marcos said the government would continue to generate revenues from the Project through a favorable sharing scheme. At the same time, the President expressed gratitude to the administration's partners in the private sector for keeping faith in the government's resolve. "Through our strategic partnerships, we will remain on course towards the attainment of our goals of total electrification of our country and of energy adequacy, reliability, and affordability, all for the betterment of the lives of the ordinary Filipinos," he said. From the discovery of the gas field more than three decades ago and the Project's commissioning in 2001, the Malampaya Deep Water Gas-to-Power Project has been a boon to the Philippines, providing 20 percent of Luzon's energy requirement. Through the Project, the government generated P374 billion in revenues. In 2022 alone, the Project yielded about P26 billion in government revenues. The Malampaya Deep Water Gas-to-Power Project utilizes state-of-the-technology to extract natural gas and condensate from the depths of the Palawan basin. It will then process the gas in the nearby shallow water production platform and transport it across three provinces through a 504-kilometer underwater pipeline. An onshore gas plant in Batangas receives the gas for further processing before it is sent to five power-plant customers for power generation.