Gas supply from the Malampaya field has resumed and started feeding to the gas plants on Friday (February 23), , as affirmed by the gas-offtakers (buyers) and the Department of Energy (DOE).

The four-day zero gas production from February 19-23 had earlier prompted full shift to liquefied natural gas (LNG) of the power plants feeding on Malampaya gas – primarily the 1,000-megawatt Santa Rita and 500MW San Lorenzo plants of First Gen Corporation. 

Energy Undersecretary Alessandro Sales explained that well availability was already secured since February 21, but it took some time for the gas output to be synchronized to the plant-users.

For the 414MW San Gabriel plant, it was indicated that its gas supply contract already lapsed on February 23 this year.

According to Meralco, the utilization of LNG for the gas plants could have spiraling impact that will be passed on to its roughly 8.0 million customers in their March billing; and the overall expectation will be increase in rates unless there would be offsetting factors from other power suppliers.

The executives of the utility firm noted though that in the absence of Malampaya gas, LNG would still thrive as a cheaper option compared to the gas plants shifting their usage to condensate or other liquid fuels.

Sales conveyed last week that there was “normal plant shutdown” at the shallow water platform (SWP) of Malampaya; and that was intended to manage high gas export pipeline underpinning the LNG commissioning of the First Gen plants.

The aggravating factor, as emphasized by the energy official, had been the discovery of corrosion in one section of the SWP, which warranted the conduct of maintenance activity.

He qualified that “due to resource availability and mobilization”, it took some time before repairs on that component of the facility had been completed.

In view of that, Sales highlighted that Malampaya operator Prime Energy needed “to implement staggered supply gas restriction” which started February 18; then cease of production was already experienced since February 19 and that lasted for about four days.

The DOE official similarly specified that there was expectation of staggered ‘easing of gas production’ restriction, hence, a speedy ramp up has not also been expected by the gas buyers.