Prime Infrastructure ready to supply natural gas in Visayas and Mindanao

MANILA, Philippines — Prime Infrastructure Capital Inc. of tycoon Enrique Razon Jr. is targeting the Visayas and Mindanao as new markets for its natural gas business.

Through subsidiary Prime Midstream, Prime Infra is exploring opportunities to extend its reach beyond Luzon and help ensure a reliable power supply amid continued market volatility.

“We envision this as a supplier and distributor for all types of industries – be it for power generation or industrial uses and the like,” Prime Midstream president and CEO Donnabel Kuizon Cruz said.

Prime Midstream operates a liquefied natural gas (LNG) terminal in Batangas, which complements indigenous gas from the Malampaya field to supply major power plants in the province.

The company took control of the terminal after acquiring a 60-percent stake from Lopez-led First Gen Corp., which retained a 20-percent interest, matching that of Japan’s Tokyo Gas.

Cruz stressed that both indigenous gas and imported LNG play a vital role in ensuring energy security and managing exposure to fuel price volatility spurred by escalating geopolitical tensions abroad.

“In terms of the volatility of the market, indigenous gas price is usually historically lower than LNG prices, be it spot or term LNG. So it helps to cushion the market price spikes that LNG experiences,” said Cruz, also president of Prime Energy.

Prime Energy operates the Malampaya deep-water gas-to-power project, the country’s first and only indigenous gas resource that supplies about 13 percent of Luzon’s electricity needs.

With the onset of a Super El Niño, Cruz said gas-fired power plants would help keep the lights on, particularly in the evening when solar generation declines.

“We see ourselves being asked to deliver more than our capacity now, which means that very reliable and affordable power sources are still much needed,” she added. “Gas-fired power plants must continue to operate in this manner.”