PRIME ENERGY Resources Development B.V. (Prime Energy) officials met with President Ferdinand R. Marcos, Jr. in Malacañang on Tuesday to brief the Palace on its “aggregator” business model that will trade imported liquefied natural gas (LNG) blended with gas from the Malampaya field.
During the meeting, the company also briefed Mr. Marcos on the progress of its projects under Malampaya Service Contract 38 (SC 38), the Presidential Communications Office (PCO) said in a statement.
The company said the “explore and develop” component of its planned business will be supplemented with imports of LNG, which it hopes will result in “the stability, competitiveness, and expansion of the country’s gas market,” the PCO said.
“An added feature is the blending of imported LNG with Malampaya gas… at a price below international prices,” the PCO said, noting that the blended gas will be made available by Prime Energy and PNOC Exploration Corp. to all power plant users at the same price.
“It seems that this gas aggregator idea is the key. Again, we have work to do,” Mr. Marcos told the Prime Energy delegation, led by Prime Infrastructure Capital, Inc. Chairman Enrique Razon, Jr., President and Chief Executive Officer Guillame Lucci, Senior Advisor Sebastian Quiniones and General Manager Donnabel Cruz.
The Palace said the company will start drilling two deep wells under SC 38 in the last quarter of 2024, “with additional production from the Malampaya field expected to start by the first half of 2026.”
The SC 38 was originally set to expire on Feb. 22, 2024. Under an agreement signed by Mr. Marcos in May, the contract has been extended by another 15 years to Feb. 22, 2039.
“With the renewal of SC 38, Prime Energy plans to commence drilling activities by 2025 in the Camago and Malampaya East fields that are in close vicinity to the existing Malampaya Platform and participate in other Service Contracts,” the PCO said. — Kyle Aristophere T. Atienza
