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Prime Energy exceeds Q2 2023 target for Malampaya

July 25, 2023 People's Journal 221 views

PRIME Energy has exceeded its target output for the months of April, May, and June 2023, citing efficient maintenance activities and integrity of equipment in the Malampaya Deep Water Gas-to-Power project as driving forces that contributed to the high sales achievement, fulfilling the usual high gas demand during summer.

Energy production and supply to customers exceeded Malampaya’s target, with gas sales in the second quarter of 2023 reaching 280 million standard cubic feet per day (MMSCFD) against a target of 274 MMSCFD.

Prime Energy General Manager Donnabel Kuizon Cruz stated: “We are very proud of the excellent performance of the asset, enabled by the tireless commitment, ingenuity and proven capability of Prime Energy employees. We intend to maintain a reliable supply of indigenous gas to our customers while we continue the hard work of exploring for new sources to address the natural decline of the Malampaya gas field. We remain committed to being the partner of choice in providing energy sufficiency and security to the country.”

Operating under an all-Filipino management and staff, Prime Energy continues to show its capability and competence in operating and maintaining the Malampaya project to harness natural gas and provide safe, reliable, and clean energy to Filipinos. At present, Malampaya supplies natural gas to power four generation plants in Batangas, with a combined capacity of 2,011 megawatts.

The Malampaya platform, pipelines, and production systems went through a two-week maintenance work early in February 2023. Working in close coordination with the Department of Energy, the maintenance activities were completed with zero incidents.

President Ferdinand R. Marcos Jr. approved the renewal of Service Contract no. 38 (SC38) in May 2023, extending the project for another fifteen (15) years until February 22, 2039. Under SC 38, the Malampaya consortium will be remitting 60% of net proceeds from petroleum operations to the national government. The consortium has remitted more than US$13.14 billion from October 2001 to December 2022.

This is not the first time that Malampaya has exceeded its projected revenues. From starting commercial operations in 2002 until the end of 2022, the gas production facility generated total sales of more than US$13 billion against a total projected sales of US$10 billion for the entire duration of the project.