MANILA, Philippines — The Department of Energy (DOE) said the two-week maintenance work on the Malampaya deep water gas-to-power project has been completed, with zero incidents recorded.
Maintenance works on the Malampaya platform, pipelines and entire system started on Feb. 4 and were completed on Feb. 18.
Following the completion of the scheduled maintenance shutdown, the DOE said operator Prime Energy resumed delivery of Malampaya gas to various power plants at 12:01 a.m. on Feb. 19 as scheduled.
“The works were completed with zero incidents recorded. This was achieved through diligent planning and execution by the operator, Prime Energy, in coordination with the DOE,” the DOE said in a statement yesterday.
The maintenance activity in Malampaya was done to ensure that the equipment and assets within the facility operate safely, reliably, and efficiently to avert any untoward incidents that can affect the continuous supply of gas to the power plants.
“While major regular maintenance works have been carried out over the last two decades, this is the first time under an all-Filipino owned consortium,” the DOE said.
Enrique Razon’s Prime Infrastructure Capital Inc. in Nov. 1 last year assumed full ownership and control of Shell Philippines Exploration BV after a successful transition process for a safe and seamless handover of operations.
Other members of the Malampaya consortium are state firm Philippine National Oil Co.-Oil Exploration Corp. and UC38.
The DOE said that prior to the start of the Malampaya maintenance works, it conducted, together with Prime Energy, numerous engagements with the stakeholder communities, local government units, and other government agencies, particularly in the vicinity of the onshore gas plant in Batangas.
“This was done to ensure awareness during the course of the works, particularly during flaring activities,” the agency said.
According to the DOE, the Service Contract (SC) 38 consortium was able to mobilize the necessary international technical services to work with the Filipino team.
The consortium tapped an international technical team to work with Filipinos involved in the maintenance mission.
Energy Secretary Raphael Lotilla looks forward to the further upgrade of technical capabilities locally and the energy supply base facilities of the Malampaya project, which has already remitted $13 billion to the national government since inception.
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.
Prime Infra president and CEO Guillaume Lucci said the consortium remains committed to ensure gas supply from the Malampaya gas field.
“We’re here to stay. We’re here to invest. We’re here to increase dramatically the gas production with the extended term of the service contract and resource available and, more importantly, we are trying to make sure we produce the least cost to consumers,” Lucci said at a recent energy forum.
With the SC 38 license for the project set to expire in 2024, the consortium is seeking an extension of the license to accelerate investments on the Malampaya gas field and improve the output of existing wells and develop nearby gas fields.
“Our drop-dead day to produce new gas or new well is first quarter of 2026 and we hope we can actually accelerate that as much as possible while doing it safely and reliably,” Lucci said.
Lotilla earlier acknowledged that the ongoing review is crucial to the country’s energy security as the “present Malampaya-Camago field is a finite one.”
Prime Infra said its investment in the expansion of Malampaya operations would also be critical in providing the necessary infrastructure to support the development of natural gas in the area, one of the key points defined in the Marcos administration’s energy agenda.
“The objective really is to produce gas, and ensure we have the least cost of gas in the country. We have a deep motivation to ensure that,” Lucci said.