Cheyenne Suarez

Malampaya operator says gas deal to lower power costs

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA — Gas field operator Prime Energy has signed a temporary deal to supply indigenous Malampaya gas to the 1,200-megawatt Ilijan Power Plant, a step projected to trim electricity rates for consumers.Under the Interim Natural Gas Supply Arrangement signed with South Premiere Power Corp., Malampaya natural gas will supply the Batangas power facility from September 1, 2026, through February 25, 2027.The deal replaces costlier imported fuel with domestic natural gas, cutting generation costs by an average of P0.36 per kilowatt-hour. Power distributor Meralco confirmed the savings will reflect in consumer bills starting September 1.&quot;This demonstrates that indigenous Malampaya gas can help lower electricity costs for consumers while delivering reliable energy supply,&quot; said Donnabel Kuizon Cruz, President and CEO of Prime Energy.&quot;Every unit of indigenous gas that displaces imported fuel helps make electricity more affordable for Filipino households and businesses while reinforcing the country&#x27;s energy independence,&quot; Cruz added.Beyond stabilizing energy supply and buffering against global market volatility, the consortium highlighted the project&#x27;s financial contributions, noting that the Philippine government nets up to 60 percent of proceeds under Service Contract 38—a framework that has generated over $14 billion in state revenues.Earlier this year, Prime Energy said the Malampaya Phase 4 (MP4) development is expected to deliver gas by the fourth quarter of 2026, following the successful drilling, completion and flow test of the Camago-3 well off Palawan.

Prime Energy has signed a deal to supply Malampaya gas to the 1,200-megawatt Ilijan Power Plant, a step projected to trim electricity rates for consumers.

Prime Energy has signed a deal to supply Malampaya gas to the 1,200-megawatt Ilijan Power Plant, a step projected to trim electricity rates for consumers.