Prime Energy Names Indigenous Gas as Hero of Energy Stability
- July 3, 2024
Managing Director and General Manager of Prime Energy Resources Development Donnabel Cruz announces the Philippines as the frontrunner in developing indigenous gas facilities, and discusses that it should be the pillar of energy policies in the country for long-term security.
Cruz noted the importance of combining imported liquified natural gas (LNG) with indigenous gases to lessen the dependence of the country on imported energy sources, providing a more cost-effective and reliable power supply.
Headquartered in Palawan, Prime Energy manages the Philippines’ first and only indigenous gas resource in the Malampaya deep water-to-gas power project.
With power grid disruptions such as typhoons and earthquakes, Cruz impresses the essential role of indigenous power sources such as geothermal, hydroelectricity and natural gas in providing sufficient supply for the country.
When Luzon signaled red and yellow alerts in the April 2024 heat wave, Malampaya had to operate at nearly 120% of its system capacity to generate 2,000 megawatts of fuel delivery, which was only 20% of Luzon’s total power demand at the time, Cruz recounts.
The incident led to a P20-per-kilowatt-hour savings on consumer electricity bills.
Cruz also stressed the financial benefits of the Malampaya project, which continues to provide substantial remittances to the government as for every peso of net revenue or sales from Malampaya gas, 60 centavos are remitted to the government. This translates to $300 million to $500 million annually, allocated for energy development projects.
Cruz highlights the cost benefits of the Malampaya project with its government remittances of 60 centavos for every peso of net revenue or sales from Malampaya gas. Compiled, this builds $300-500 million per annum that the government can invest in energy development projects.
Service Contract 38, which governs the Malampaya project, has been extended for another 15 years until February 2039.
Source: Prime Energy pushes for Indigenous gas to ensure energy stability
