Prime Infrastructure to provide gas supply at least cost

MANILA, Philippines — Prime Infrastructure Capital Inc. of tycoon Enrique Razon is eager to provide the country with gas at the least cost possible through the Malampaya deep water gas-to-power project as well as other potential service contracts.

“We have absolutely the intention not only to further explore the SC 38, but also to look at surrounding service contracts in the Philippines,” Prime Infra president and CEO Guillaume Lucci at the Powertrends International Business Forum yesterday.

Prime Infra, through subsidiary Prime Energy Resources Development B.V., is a member of the service contract (SC) 38 consortium that operates the Malampaya gas field.

The Malampaya asset is a significant addition to Prime Infra’s growing energy portfolio as it reduces the country’s reliance on imported fuel and helps drive economic productivity and industrial growth.

Prime Infra’s investment in the expansion of Malampaya operations is critical in providing the necessary infrastructure that would support the development of natural gas in the area, one of the key points defined in the administration’s energy agenda.

The SC 38 consortium, which is also composed of UC38 and state firm Philippine National Oil Co.-Exploration Corp., is seeking for a 15-year license extension to accelerate investments on the Malampaya gas field and improve the output of existing wells and develop nearby gas fields.

The consortium’s license for the project set to expire in 2024.

“Our drop-dead day to produce new gas or new well is first quarter of 2026 and we hope we can actually accelerate that as much as possible while doing it safely and reliably,” Lucci said.

“The objective really is to produce gas, and ensure we have the least cost of gas in the country. We have a deep obligation to ensure that,” he said.

Department of Energy (DOE) director for Energy Policy and Planning Bureau Michael Sinocruz said the review of the license extension is ongoing.

“We are reviewing it for final approval,” he said during the forum.

The Malampaya project is one of the country’s most important power assets, as it produces natural gas for power plants in Batangas that account for around 20 percent of the Philippines’ total electricity requirements.