Indigenous gas seen as ‘bedrock’ for energy security

MANILA, Philippines — Developing indigenous gas facilities should be an integral component of the country’s policy to ensure energy security, a Prime Energy Resources Development official said.

In a recent energy forum, Prime Energy managing director and general manager Donnabel Cruz stressed the importance of synergy between imported liquified natural gas (LNG) and indigenous gas.

Utilizing these energy sources, she said, would help in providing a reliable and affordable power supply.

“Indigenous gas development must remain the bedrock of our energy policy,” Cruz said.

Prime Energy, the energy arm of Razon-led Prime Infrastructure, operates the Malampaya deep water gas-to-power project, the country’s first and only indigenous gas resource in offshore Palawan.

With the power grid becoming increasingly vulnerable to weather and other disruptions, Cruz said indigenous sources such as geothermal, natural gas and hydro would guarantee fuel supply for the country.

“During the April heat wave, when the Luzon grid was on yellow and red alert, Malampaya operated at close to 120 percent of its current system capacity,” she pointed out.

According to Cruz, Malampaya delivered sufficient fuel to generate 2,000 megawatts, or about 20 percent, of Luzon’s total power demand during that time.

This enabled consumers in Luzon to save up to P20 per kilowatt-hour on their electricity bills, she said.

Furthermore, Cruz said Malampaya continues to provide remittances to the government that can be used to boost the country’s energy sector.

“For every peso of net revenue or sales from Malampaya gas, 60 centavos are remitted to the government. This amounts to $300 million to $500 million annually for use in energy development projects.”

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