Prime Infrastructure, First Gen in talks for Malampaya gas aggregation

MANILA, Philippines — Razon-led Prime Infrastructure Capital Inc. is in talks with Lopez-owned First Gen Corp. for the development of a gas aggregation framework using the latter’s liquefied natural gas (LNG) terminal in Batangas.

The two parties said gas aggregation would “make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG.”

First Gen said the gas aggregator framework would ensure a least-cost solution for consumers, enhance energy security, and provide a competitive power generation market, while exploration activities leading to the commercial development of new indigenous natural gas fields are undertaken.”

“All of these activities are in response to the national government’s urgent call for significant investments to ensure national competitiveness,” First Gen said.

Key to the gas aggregator framework would be FGen LNG, a wholly owned subsidiary of First Gen, which had signed an MOA with Prime Infra for the use of its LNG and re-gasification terminal.

It said the lease of its LNG terminal is part of the gas aggregation proposal, which would leverage existing Malampaya gas facilities being operated by a consortium now led by Prime Infra through Prime Energy.

Prime Infra holds a 45 percent stake in the Malampaya consortium.

The proposed framework would also tap the Malampaya consortium’s expertise in the natural gas market and would lead to reliable and lowest cost supply of clean gas to the country’s power plants.

The gas aggregator framework “establishes a resilient and efficient natural gas supply chain,” Prime Infra president and CEO Guillaume Lucci said.

The proposal, he said, “would ensure a stable and sustainable baseload power supply.”