Malampaya gas flows again to Ilijan power plant

MANILA, Philippines — The 1,200-megawatt Ilijan power plant in Batangas is once again running on indigenous natural gas from the country’s Malampaya deep water gas-to-power project.

The resumption of indigenous gas supply follows the rehabilitation and restoration of the Ilijan natural gas receiving facility, which achieved operational readiness in December last year.

Supply is covered by a six-month interim natural gas supply agreement between Malampaya operator Prime Energy Resources Development B.V. and South Premiere Power Corp. (SPPC), effective Sept. 1.

Ilijan was among the facilities that helped establish the country’s first indigenous gas-to-power value chain following the development of the Malampaya field. Its original gas supply agreement with Malampaya expired in June 2022.

“With Malampaya gas flowing again to the Ilijan power plant, the renewed use of indigenous natural gas supports reliable baseload power for the Luzon grid while strengthening the country’s energy security,” the Department of Energy said.

The milestone was made possible through the collaboration of the government, Prime Energy and SPPC to restore the Tabangao-Ilijan pipeline.

SPPC is a corporate unit of LNGPH, the multibillion-dollar gas venture of tycoons Manuel V. Pangilinan, Ramon Ang and Sabin Aboitiz.

For LNGPH president and CEO Yari Miralao, bringing Malampaya gas back to Ilijan represents more than simply restoring fuel supply.

“By reconnecting indigenous gas to a major power generation facility through LNGPH, we are helping translate local energy resources into dependable electricity for Filipino consumers and greater resilience for the Luzon grid,” Miralao said.

The Ilijan gas deal with Malampaya is estimated to reduce generation charges by around P0.36 per kilowatt-hour beginning September, potentially providing relief to consumers.

“Price stability, affordability, reliability and energy security – these are among the benefits of using our own Malampaya gas,” Prime Energy president and CEO Donnabel Kuizon Cruz said.

Located in offshore Palawan, the Malampaya project is the country’s first and only indigenous gas resource, supplying about 13 percent of Luzon’s electricity requirements.