Malampaya operator backs law to develop PH gas sector

PRIME Energy Resources Development B.V., operator of the Malampaya Deepwater Gas to Power project, will support the proposed law to create a legal and regulatory framework for the development of the local gas industry.

Donnabel Kuizon-Cruz, general manager of the Razon-led Prime Energy, said in a statement over the weekend that Senate Bill (SB) 152, or the proposed “Natural Gas Industry Development Act,” would help keep the drilling of new gas wells on track.

She said the proposed measure will also protect consumer rights by encouraging transparency and competition in the gas industry.

“I’d like to convey our full support [for] this, and we believe it is very timely and relevant,” Kuizon-Cruz said.

“We have to continue exploring for new gas, and we will need LNG (liquefied natural gas) to fill in the gap,” she said.

“While we are doing that, we need the LNG bill in order to allow all parties who are importing gas, or in our case — our proposal to also blend imported LNG with indigenous gas — to do this in a very organized way to protect consumers,” she added.

Kuizon-Cruz added that the bill will help them a lot as it is aimed at protecting everybody.

“If we have a bill that allows us to import in a way that there is the purview of the government on how much the price will be, how the industry will collaborate, then we can do that in a way that all are protected,” she said.

Prime Energy, which holds a 45 percent operating stake in the Malampaya consortium, has committed to drilling at least two deep-water wells from 2024 to 2029. Its work is designed to unlock the potential of both the existing gas field and nearby areas.

“After more than 20 years, production from Malampaya is dwindling, and, therefore, there is an urgent need for us now to explore and develop more indigenous gas sources,” Kuizon-Cruz said.

“We are embarking on projects to do that, but we will need time to do that,” she added.

Prime Energy has partnered with First Gen Corp. for a gas aggregation framework that would put in place an orderly system of gas distribution.

The partnership would have the Razon-led firm lease and operate liquefied natural gas (LNG) terminals at First Gen as part of the gas aggregation plan.

Supply of gas to power plants that use it as fuel would be rationalized under the gas aggregation plan, which can result in stable rates for consumers.