The National Youth Movement for the West Philippine Sea (NYMWPS) has demanded transparency regarding the circumstances leading to the total shutdown of the Malampaya natural gas facility.
They have accused the energy department of covering up for the alleged incompetence of Prime Energy, which currently operates the facility under a controversy-ridden contract awarded by the Philippine government.
Dr. Celia Lamkin, NYMWPS founder and global chair, said that while Prime Energy itself has not issued an official statement about the shutdown, “it took officials of the DOE themselves to come to Prime’s defense.”
The DOE earlier explained that the shallow water platform (SWP) of the gas facility initiated normal plant shutdown to manage high gas export pipeline pressure owing to LNG commissioning activities at the First Gen plants resulting in very low Malampaya draw rates.
It added that Prime Energy discovered corrosion in a section of the SWP requiring the shutdown to undertake permanent repairs.
Lamkin, however, accused Prime Energy of “lacking concern and responsibility to foresee the shortfall and to report it in a timely manner as possible to its customers.”
“Even before the service contract was awarded, local petroleum experts expressed serious doubts about Prime’s technical qualifications, having never been involved in any phase of oil and gas exploration or production,” Lamkin added.
With the shutdown of the Malampaya gas operations, the power plants have been compelled to shift to liquefied natural gas (LNG) which is more expensive compared to indigenous gas.
If the reduced output at Malampaya continues in the wake of El Nino-saddled dry months, consumers in the Luzon grid are expected to face heftier hikes in their electric bills and disruption of services.
