Prime Energy pushes for Indigenous gas to ensure energy stability

Developing indigenous gas facilities should be a cornerstone of the Philippines’ energy policy to ensure long-term energy security, according to Donnabel Cruz, Managing Director and General Manager of Prime Energy Resources Development.

In a report by the Philippine Star, Cruz highlighted the essential role of combining imported liquified natural gas (LNG) with indigenous gas resources to provide a reliable and affordable power supply. 

Malampaya deep water gas-to-power project, the Philippines’ first and only indigenous gas resource situated offshore in Palawan, is managed by Prime Energy.

With the power grid becoming more susceptible to weather and other disruptions, Cruz emphasized the critical role of indigenous sources like geothermal, natural gas, and hydro in maintaining a stable fuel supply for the country.

During the April heat wave, when the Luzon grid faced yellow and red alerts, Malampaya operated at nearly 120 percent of its system capacity, delivering enough fuel to generate 2,000 megawatts, approximately 20 percent of Luzon’s total power demand at that time, Cruz added. 

This resulted in up to Php 20 per kilowatt-hour savings on consumers’ electricity bills.

Cruz also stressed the financial benefits of the Malampaya project, which continues to provide substantial remittances to the government as for every peso of net revenue or sales from Malampaya gas, 60 centavos are remitted to the government. This translates to $300 million to $500 million annually, allocated for energy development projects. 

Service Contract 38, which governs the Malampaya project, has been extended for another 15 years until February 2039.