Malampaya gas flows again to Ilijan power plant

Batangas' 1,200-megawatt Ilijan power plant is once again powered by indigenous natural gas from the Malampaya deep water gas-to-power project. The resumption occurred after the rehabilitation and restoration of the Ilijan natural gas receiving facility, which became operational in December of the previous year. The supply agreement between Malampaya operator Prime Energy Resources Development B.V. and South Premiere Power Corp. (SPPC) covers a six-month period, starting from September 1.

SPPC, a subsidiary of LNGPH, a multibillion-dollar gas venture, plays a crucial role in this partnership. The resumption of indigenous gas supply to Ilijan is viewed as a significant milestone, enhancing reliable baseload power for Luzon's grid and bolstering the country's energy security. The Department of Energy lauded this development, emphasizing the collaboration between the government, Prime Energy, and SPPC in restoring the Tabangao-Ilijan pipeline.

As LNGPH President and CEO Yari Miralao pointed out, reconnecting local energy resources to a major power generation facility not only provides dependable electricity for Filipino consumers but also enhances the Luzon grid's resilience. The Ilijan gas deal with Malampaya is estimated to lower generation charges by approximately P0.36 per kilowatt-hour, commencing from September, potentially offering relief to consumers.

Prime Energy President and CEO Donnabel Kuizon Cruz highlighted the benefits of using Malampaya gas, including price stability, affordability, reliability, and energy security. The Malampaya project, situated offshore Palawan, is the Philippines' first and only indigenous gas resource, contributing to about 13 percent of Luzon's electricity needs.