Malampaya output not enough for future expanded requirements

MANILA, Philippines — Gas supply from the Malampaya project will not be enough for future requirements such as expanding the application of natural gas to various sectors, the country’s energy chief said.

“They say that the Malampaya supply can go as far as 2027, but it does not have enough gas for the further expansion needed to provide future natural gas requirements, particularly with the plan to expand application of LNG (liquefied natural gas) in the industrial, commercial, residential, and transport sectors,” Energy Secretary Alfonso Cusi said during the 9th LNG Producer-Consumer Conference organized by the Japanese Ministry of Economy, Trade and Industry.

The Malampaya deep-water gas-to-power project has been operating since 2001 and its concession contract will expire in 2024. It is the only local producer of indigenous natural gas.

“The Philippines has been intensifying its efforts to ensure our energy security with the expected depletion of the Malampaya gas field in the next few years,” Cusi said.

Among these efforts include the regulation of the downstream natural gas industry and efforts in attracting more investments into this sector.

“Hence, I’m hopeful that the newly published Philippine LNG investor’s guide, which we are actively promoting, will lead to more investors in our downstream LNG industry,”Cusi said.

“And in pursuit of our vision to transform the country into a regional LNG hub in Southeast Asia, we have taken the first step to establishing our LNG regasification capacity to secure replacement fuel for Malampaya and augment our power supply capability,”Cusi said.

He said the DOE has already issued notices to proceed to four firms – Excelerate Energy, Batangas Clean Energy, Energy World Corp. and First Gen LNG Corp. – for their proposed LNG terminal projects.

“We are optimistic that these developments signal the dawning of a vibrant LNG industry in our country,”Cusi said.