The return of indigenous Malampaya natural gas to the 1,200-megawatt Ilijan Power Plant in Batangas is expected to slash electricity generation charges by about 36 centavos per kilowatt-hour, offering much-needed relief to consumers while cutting foreign fuel dependence.
Prime Energy, operator of Service Contract 38, revived the crucial fuel pipeline to South Premiere Power Corp. under an interim deal running from September 1, 2026, to February 25, 2027.
The breakthrough follows the rehabilitation of the Tabangao-Ilijan Pipeline through a joint effort by Prime Energy, SPPC, PNOC Exploration Corp., and PSALM. Shifting back to domestic gas shields power generators from wild international price swings, given that Malampaya gas has historically beaten imported liquefied natural gas by over $4 per million British thermal units.
“What we are celebrating today is not just the admission of Malampaya gas and the beginning of a new gas supply arrangement, it is also the continued use of critical energy infrastructure,” said Prime Energy President and CEO Donnabel Kuizon Cruz.
Both firms are already eyeing a long-term supply pact past February 2027. Meanwhile, the upcoming rollout of Malampaya Phase 4 in late 2026 promises even greater fuel security and long-term power rate stability.
Prime Energy is part of the investment portfolio of Enrique Razon Jr., the wealthiest Filipino by Forbes’ calculations.
