President Ferdinand "Bongbong" Marcos Jr. is expecting a more stable and cheaper energy prices for the Filipino people with the expanded development of Malampaya gas field and the blending of imported liquified natural gas (LNG). In a meeting with Prime Energy Resources Development in Malacañang, Marcos said the energy operator's plan to explore and develop ingenious gas prospects is a work to be done. He said the company's"gas aggregator idea is the key," as it also expressed interest in supplementing the current indigenous gas production with LNG imports through a gas aggregation framework, which will then enable the stability, competitiveness and expansion of the Philippine gas market. Photo courtesy of Presidential Communications Office
Prime Infrastructure Capital Inc. Chairman Enrique Razon Jr. led the presentation on Tuesday at the Malacañang, where the President was briefed on the progress made in developing the nearby fields within Malampaya Service Contract 38. According to the Palace, the drilling of Prime Energy's two deep wells will start in the last quarter of 2024, with additional production from the Malampaya field expected to start by the first half of 2026. During the meeting, Prime Energy also told Marcos about its plan to import LNG to make up for shortfalls in Malampaya gas. It said it will blend imported LNG with Malampaya gas as an added feature to ensure stability of supply at a price below international prices, the Palace added. The blended gas will be made available by Prime Energy and PNOC Exploration Corp. (PNOC-EC) to all gas power plants at the same price. Prime Energy is a natural gas exploration and development company with 45 percent operating interest in Service Contract No. 38 (SC 38), covering the Malampaya Gas-to-Power Project. The Malampaya gas field is the only indigenous gas source in the country. President Marcos signed the Renewal Agreement of Service Contract No. 38 (SC 38) on May 15, 2022, which extends the contract until February 2039. With the renewal of SC 38, Prime Energy plans to start its drilling activities by 2025 in the Camago and Malampaya East fields, which both are in close vicinity to the existing Malampaya Platform and participate in other Service Contracts. Marcos reiterated the government's commitment to ensure stability of supply, affordability, transparency and competition in the Philippine natural gas market, particularly with the first introduction of imported LNG.