Prime Infrastructure to advance potential of Malampaya project  

MANILA, Philippines — Prime Infrastructure Capital Inc. of tycoon Enrique Razon has committed to further the potential of service contract (SC) 38 covering the Malampaya deep water-to-gas project to ensure the continuity of gas production as long as the reserves can accommodate it.

“We are at a critical time right now in our country’s energy transition. We aim to contribute by doing all that can be done to generate as much power as possible to keep up with the energy demands in Luzon,” Prime Infra president and CEO Guillaume Lucci said.

“The most important thing to do for the company right now is to sustain and expand gas production while we address the license extension for SC 38,” he said.

Prime Infra has completed the acquisition of the 45-percent operating stake in Malampaya through one of its subsidiaries, Prime Energy.

The company on Nov. 1 assumed full ownership and control of Shell Philippines Exploration BV (SPEX) after a successful transition process for a safe and seamless handover of operations.

The move marked the initial foray of Prime Infra into the upstream energy market.

Prime Infra said the Department of Energy (DOE) paid a visit to the Malampaya shallow water platform on Dec. 8 to perform an assessment of its condition and ensure continued operations and sustainability.

Located some 50 kilometers offshore from Palawan, the shallow water platform is the part of the facility that processes the gas that will subsequently be exported through a 504-kilometer underwater pipeline.

Energy Secretary Raphael Lotilla said he is looking forward to the facility serving future generations of Filipinos.

“We are grateful for the opportunity given to our Filipino team members to have a brief one-on-one session with Secretary Lotilla, where the secretary was able to confirm the alignment of the goals of the DOE and the Malampaya project regarding its continued operation,” Prime Energy general manager Sebastian Quiniones said.

The license of the Malampaya consortium, which is composed of Philippine National Oil Co.-Oil Exploration (PNOC EC), UC38, and Prime Energy, is set to expire in 2024.

The consortium is looking to secure a contract extension to sustain and expand gas production in light of the growing electricity demand.

The Malampaya project is one of the country’s most important power assets, as it produces natural gas to power plants in Batangas City that power up to 20 percent of the Luzon’s total electricity requirements.