The Malampaya consortium is set to commence drilling activities in the waters of Palawan by late 2024, as announced by the Department of Energy (DOE) on Wednesday this week.
Owned jointly by the government, Udenna Corp of Dennis Uy, and Prime Energy Resources of Enrique Razon, Malampaya also anticipates the commencement of natural gas production by 2026.
The DOE said this development follows the recent 15-year renewal of Malampaya’s franchise, which was originally scheduled to expire in 2024.
Energy Secretary Raphael Lotilla emphasized that Malampaya will serve as a dependable backup to renewable energy sources such as wind and solar, which are subject to fluctuations in efficiency depending on weather conditions.
“We need natural gas to complement those volatilities, and we look forward to a more stable supply for the country, especially in the power sector,” Lotilla stated.
Earlier, President Ferdinand Marcos Jr. expressed his anticipation that the operation of Malampaya would contribute to a more stable and affordable power supply in the Philippines.
He recently held a meeting with the officials of Prime Energy Resources Development B.V., the purpose of which was to discuss the company’s strategy for exploring and developing indigenous gas prospects.
Additionally, he discussed the possibility of supplementing the existing indigenous gas productions by importing liquefied natural gas (LNG) through a gas aggregation framework.