Push Admin

Malampaya gas deposit pressure going down: Prime exec

Article (news)

Sherrie Ann Torres, ABS-CBN News

MANILA — Pressure from natural gas deposit in Malampaya Power Plant has declined, making it necessary to act fast and scout for additional gas sources, an executive of Prime Infrastructure Capital said on Thursday.During a discussion on the proposed Midstream Natural Gas Industry Development Act, Prime managing director Donnabel Kuizon-Cruz reported a decline in gas pressure at the Malampaya Power Plant. “We can’t really pinpoint an exact date or when the Malampaya supply will just sort of cut off because it depends on how we plan our production... the geology of it is just that. The pressure would decline overtime” Cruz told the Senate Committee on Energy.&quot;What we need to do before at a certain pressure level, we have to explore already for other sources in the same petroleum system or other areas close by,&quot; she added. Finding a new source of gas, will “tie back” or supplement the flow of supply, Cruz said. “The problem we are facing, it takes a long time to explore and develop indigenous gas resources,” she said.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/20/23/ph-has-more-untapped-gas-fields-doe-says">PH has more untapped gas fields, DOE says</a></li></ul>Gas exploration needs “5 to 10 years” to be completed, Cruz noted. &quot;The longer that we wait for that contract to be approved, the shorter the time for us to explore,” she added.Prime Infrastructure Capital will start its drilling activities in 2025.While the gas exploration is ongoing, there will be a need to import LNG or liquified natural gas. The Midstream Natural Gas Industry Act aims to ensure a polished process in importing LNG. For Meralco, reduced gas pressure is a big concern to the supply demand of consumers, said its vice president and head of Utility Economics, Lawrence Fernandez. “In the case of Meralco, we purchase almost all of the output of power plant that make use of Malampaya Natural Gas. And as you mentioned, the supply of Malampaya Gas is depleting,” Fernandez said.&quot;But even before that, the power industry has been affected by intermittent gas supply restrictions from the Malampaya supply. There are instances when the Malampaya cannot provide supply efficient gas to the power plant. We have to resort either to shutdown or to more expensive liquid fuel, which results to higher power rates to consumers,&quot; he continued. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/09/23/singil-sa-kuryente-may-bawas-ngayong-agosto-meralco">Singil sa kuryente may bawas ngayong Agosto: Meralco</a></li></ul>Meralco is also &quot;concerned&quot; about the impending expiration of the gas agreement of the First Gas Power Plant, he said. One example of the impact of an expired gas agreement was the case of Ilijan in Lobo, Batangas last year, which led to the full stoppage of the Ilijan Power Plant with Luzon losing 1,200MW, Fernandez said. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/09/23/marcos-notes-phs-slow-transition-to-renewable-energy">Marcos Jr recognizes PH&#x27;s &#x27;slow&#x27; transition to renewable energy</a></li></ul>An expired gas agreement of First Gas Power Plants in Sta. Rita next year and First Gas in San Lorenzo in 2025, both located in Batangas City, might repeat that scenario, Fernandez said.“We would want to avoid that situation and look forward to the supply of LNG for a reliable operation of the existing gas plants,” Fernandez said.According to Energy Undersecretary Sharon Garin, Malampaya’s deposits would not be totally deplete, but could be reduced significantly to the point it would no longer be economically viable to access in the future.“If you compare to last year or two years ago, we had 300M standards cubic feet... ngayon 285 na lang sya. So, bumababa lang, but not like that it will be gone from one day to another. That’s why in the work plan and we approved the extension, they had to do extra work and explore in other areas... Thus, we have a new well, hopefully,” Garin explained. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/07/05/23/malampaya-eyes-new-gas-production-by-2026">Malampaya eyes new gas production by 2026</a></li></ul>Data culled from the Department of Energy by Sen. Sherwin Gatchalian, indicated a 1.56-percent gas production reduction of Malampaya, from 2019’s 155,690M standard cubic feet to year 2020’s 141,732M standard cubic feet.“Assuming we don’t find anything, when will Malampaya stop producing gas? Is the output of our power plants affected also? Now the uncertainty is, we don’t know when the new wells will come in,” Gatchalian said.“We project it would continue to go down until we are able to drill a well and hopefully, get gas remits. We will be drilling in 2025, and hopefully, with the gas coming in in 2026,” Cruz answered.Panel chairman Sen. Raffy Tulfo also zeroed in on the remaining deposits of Malampaya.“Kailan made-deplete ang Malampaya gas supply? Kasi sabi 2025 o 2027, alin ba talaga kuya? Give us a definite time,” Tulfo said.“Based on estimate is 2027, dependent on the uptick,” replied Rolando Oliquino, vice president for Downstream Operation Division of the Philippine National Oil Petroleum Company-Exploration Corporation (PNOC-EC).Meanwhile, Gatchalian said after the hearing that LNG importation would definitely affect prices of electricity and other commodities since its price is dependent on the world market.And while there are also two terminals that the country can use, it does not guarantee a lower price of electricity, he added.“Ang kagandahan mayroon nang dalawang terminal na pwede nating gamitin, so hindi na tayo magkakaroon ng shortage. Of course, on the other side imported &#x27;yan. So, susceptible &#x27;yan sa market prices, susceptible din sa shortage. Kung let’s say, mag-escalate uli &#x27;yung Russian war, baka magkaproblema tayo sa supply,” Gatchalian explained.The committee is slated to refer the additional discussion on the proposed bills for the Midstream Natural Gas Industry Act to the technical working group.<div>RELATED VIDEO:</div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2618185" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Natural gas deposit pressure in Malampaya Power Plant has declined, making it necessary to scout for more gas sources, a Prime exec said.

Malampaya gas deposit pressure going down: Prime exec

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Business

Malampaya gas deposit pressure going down: Prime exec

Sherrie Ann Torres,

ABS-CBN News

Published Aug 10, 2023 05:16 PM PHT

Read More:

gas

Malampaya

meralco

Senate

Raffy Tulfo

Sherwin Gatchalian

power

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.