Homelucky pot Prime Energy says developing local gas to address 3 energy concerns
MANILAlucky pot, Philippines—Tycoon Enrique Razon-led Prime Energy said developing indigenous sources would address three major energy challenges—sustainability; security and costs.
In a statwment on Monday, Prime Energy said natural gas is not just a transition but a transformative fuel.
At the Norway-Philippines LNG Summit 2024 held November 11, Prime Energy President and CEO Donnabel Kuizon Cruz said that while renewable energy plays an important role in the country’s future, natural gas is essential to bridging the gap to a low-carbon economy, offering both reliability and price stability.
Article continues after this advertisement“I stand with the Department of Energy’s (DOE) answer: implement a balanced Philippine Energy Plan where renewable energy capacity grows alongside natural gas as a transformative –not just transition—fuel, and to accelerate the development of indigenous resources,” Cruz said.
FEATURED STORIES BUSINESS To the trade secretary, please save our bananas BUSINESS Experience holiday joy at Met Park’s festive estate BUSINESS DoubleDragon eyes first industrial REIT IPO in 2025“The country’s massive buildup of intermittent renewable energy capacity over the next 20 years will require natural gas to fuel mid-merit baseload power generators that will maximize renewables capacity, keep power supply reliable, and stabilize the cost of electricity,” she added.
But indigenous gas, she said, was the answer to reducing reliance on imported fuel and would help stabilize energy prices.
Article continues after this advertisementIndigenous gas, Cruz said is also a major revenue source for the government, which currently earns 60 cents per dollar of Malampaya gas sold.
Article continues after this advertisementTo date, the Malampaya consortium has remitted $13.8 billion in revenues to the government.
Article continues after this advertisement“Indigenous gas is the bedrock from which our natural gas industry can take root and expand,” Cruz said.
“But we must recognize that indigenous gas and LNG are two parts of a whole that we call ‘natural gas’. One simply cannot thrive without the other. And we need natural gas. It is the way to transition to our energy future,” Cruz said.
Article continues after this advertisement“In this future, no one is left behind – by high electricity prices, by brownouts, or by the devastation of droughts and floods. This is the future that all of us in Prime Energy are committed to creating,” she added.
The renewal of Service Contract 38 (SC 38) governing Malampaya operations paves the way for more exploration to extend the gas field’s life through Project Sinagtala.
“The wells will produce new gas in 2026 – just three years after the SC38 contract renewed,” Cruz said.
“This is a rare feat in such complex deepwater terrain as ours, but it can be done. It is a testament to our team’s world-class capability and innovative mindset; and equally importantly, a testament to the active support of the government and our consortium partners in making this work possible,” Cruz said.
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