Council finds ways to prolong Malampaya life

Malampaya has been powering up to 20 percent of Luzon’s total electricity requirements

The technical experts and key industry leaders comprising the Malampaya advisory council are finalizing details of their long-term plans and multi-year exploration and development programs of Prime Energy.

Prime Energy is a subsidiary of Prime Infrastructure Capital Inc. (Prime Infra) that has recently completed its acquisition of the 45-percent operating stake in Malampaya.

“The new advisory council initiated by Prime Energy for the Malampaya project will serve the purpose of providing strategic advice and technical guidance to support the Board and me in this critical time when the company’s exploration and development programs are about to commence to prolong the gas supply, which is becoming increasingly scarce,” Prime Energy general manager Sebastian Quiniones said.

Quiniones heads the advisory council that provides technical expertise to the management team by crafting necessary structures for implementation and serving as a sounding board for fundamental actions such as engaging with authorities.

All concerned parties of the Malampaya project, including the joint venture partners in the consortium and the Department of Energy, agreed that urgent action is needed to address the depleting gas supply. By 2025-2026, gas exports will reach near the technical minimum before new gas can be sourced.

The Malampaya project uses indigenous natural gas to reduce oil imports, contribute to better air quality and generate significant revenues for the local government amounting to $12 billion or over P1 trillion.

Malampaya has been powering up to 20 percent of Luzon’s total electricity requirements. The consortium’s license for the project will expire in 2024.

The members of the advisory council include Cesar Buenaventura, the first Filipino President of Pilipinas Shell Petroleum Corporation, who was instrumental in guiding the various Oil Majors to invest and develop the Malampaya project in the Philippines; Jose Ibazeta, Prime Metro Power Director and industry leader who served as president and chief executive officer of the Power Assets and Liabilities Management Corporation from 2007 to 2010 and acting Secretary of the Department of Energy from January 2010 to 30 May 2010.