Prime Energy Resources Development B.V. sold far more electrical power than it planned in the second quarter this year due to the efficiency of its maintenance activities and the integrity of its equipment in the Malampaya gas-to-power project.
The company said its energy production and supply to customers exceeded the target as gas sales during the quarter hit 280 million standard cubic feet per day (MMSCFD) against the target of only 274 MMSCFD.
“We intend to maintain a reliable supply of indigenous gas to our customers while we continue the hard work of exploring 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,” said Donnabel Kuizon Cruz, Prime Energy general manager.
Malampaya supplies natural gas to four power generation plants in Batangas with a combined capacity of 2,011 megawatts.
Prime Energy said this was not the first time the Malampaya exceeded its sales and revenue goals. Since starting commercial operations in 2002 up to end of 2022, the gas production facility generated sales of more than $13 billion against projected sales of only $10 billion.
In a separate development, the Department of Energy (DOE) said the extension of the Malampaya service contract (SC) 38 is seen to lead to more gas and energy projects that makes the supply of electricity in the country more reliable, stable and affordable.
The agency reported that its extension until 22 February 2039 is a key indicator of progress in the development of the natural gas industry in the Philippines. The extension allows for full production of the Malampaya field through full use of its remaining gas reserves of about 147 billion cubic feet.
The DOE said this would jump-start the exploration and development of other fields in the area believed to hold up to 210 billion cubic feet more of natural gas.
The extended SC 38 requires the Malampaya consortium to explore areas around Malampaya for new wells. It is also required to put in place a work program for geological and geophysical studies and to drill at least two deep-water wells from 2024 to 2029.
The extension of the contract is similarly seen to result in making natural gas a more affordable fuel source with the ongoing talks between Prime Energy and FGen LNG Corp. in a gas aggregation agreement blending indigenous versus imported gas supply.
