Prime Infrastructure ready to supply natural gas in Visayas and Mindanao

Manila, Philippines — Prime Infrastructure Capital Inc., headed by tycoon Enrique Razon Jr., is set to expand into the Visayas and Mindanao regions as new markets for its natural gas business. Through its subsidiary, Prime Midstream, the company is exploring opportunities to broaden its reach beyond Luzon and ensure a steady power supply amidst ongoing market fluctuations.

Donnabel Kuizon Cruz, President and CEO of Prime Midstream, stated that the company is positioning itself as a supplier and distributor for a variety of industries, including power generation and industrial use.

Prime Midstream currently operates a liquefied natural gas (LNG) terminal in Batangas, which works in tandem with indigenous gas from the Malampaya field to supply major power plants in the province. The firm acquired this terminal after gaining a 60-percent stake from First Gen Corp., with Japan's Tokyo Gas holding the remaining 20 percent.

Cruz emphasized that both indigenous gas and imported LNG are crucial for maintaining energy security and mitigating the impact of fuel price volatility caused by rising geopolitical tensions abroad. She explained that indigenous gas prices are typically lower than LNG prices, either spot or term, which helps to counteract market price spikes experienced with LNG.

With the beginning of a Super El Niño, Cruz anticipates that gas-fired power plants will play a crucial role in maintaining power, especially during the evening when solar generation decreases. She expressed the company's readiness to fulfill growing demands, highlighting the necessity for reliable and affordable power sources. Cruz also confirmed that gas-fired power plants must continue to operate in this manner.