With the offshore gas source having powered the country for the past 25 years.
Last Thursday, November 5, President Ferdinand Marcos, Jr. led the ceremony for the first gas milestone of the Malampaya Phase 4 (MP4) “project in Batangas City.
“From offshore Palawan, this indigenous natural gas will flow through the Malampaya gas transmission infrastructure to Batangas, and ultimately to the gas-fired power plants serving the Luzon grid,” the President said in his address.
The Malampaya East-1 and Camago-3 wells were successfully drilled and tested in the first quarter of this year and led to the discovery of an estimated 222 billion cubic feet of natural gas reserves.
Eventually, in June, both wells were connected to the existing Malampaya subsea production system as part of the MP4 project.
It is capable of generating approximately 31.46 billion kilowatt-hours of electricity, which is enough to power 13.11 million Filipino households for one year.
Based on initial well-test results, the two wells could extend Malampaya’s productive life by approximately six years, depending on future gas offtake.
Malampaya natural gas currently supplies gas-fired power plants in Batangas that serve the Luzon grid.
“And, here we are today. It gives me great pride to be part of this ceremony and to stand with you as we mark the first delivery of natural gas from these newly developed drills and wells,” the Chief Executive added.
He then explained: “Ano ang ibig sabihin nito para sa bawat pamilyang Pilipino? Sariling gas. Mas maaasahang kuryente. Mas matatag na enerhiya ng bansa.”
For him, securing an indigenous natural gas source for the energy needs of the Philippines would mean a stable electricity supply vital to its long-term energy security.
Furthermore, maximuzing the Malampaya gas field could contribute to more competitive power rates in the country, as it will help reduce its reliance on imported energy sources vulnerable to fluctuations in international energy prices.
According to the President, more than half of the Philippines’ energy supply last year came from overseas, making the energy sector highly susceptible to geopolitical tensions, supply disruptions, and price fluctuations.
“That is why we need to explore and develop more local energy resources, especially renewable energy sources,” he stressed
FOR JOB CREATION
The President also underscored the importance of the project in creating jobs, developing the expertise of Filipino workers, and boosting government revenues.
“The Malampaya Deep Water Gas-to-Power Project stands as proof of what we and our country can do and what we can achieve when we, the government, the private sector, and our Filipino talents work together hand-in-hand,” he said. “Beyond energy security, this project boosts employment, develops Filipino technical expertise, and contributes to government revenues.”
The President aoso commended the Filipino engineers, professionals, and workers for making the MP4 Project possible—one that demonstrates their capability and competence.
SUSTAINING TBE MOMENTUM
Another matter that he highlighted is sustaining the momentum in this project through continued cooperation among the government, industry, and development partners.
“On the part of government, you may rest assured that we will continue to pursue initiatives that foster a more conducive environment for energy exploration and production,” he said.
To attract more exploration in the country, the Department of Energy (DOE) also granted special allowances for service contractors involved in new areas.
The Philippine Gradiometry and Seismic Survey Project is also being implemented to help identify promising exploration opportunities.
The government is also gives priority to the procurement and utilization of domestic natural gas over those imported from sources abroad by gas-fired power plants through the passage of the Philippine Natural Gas Industry Development Act.
The President also reported that under his administration, the government has awarded 14 new Petroleum Service Contracts covering oil, natural gas, and native hydrogen exploration.
“Taken together, these measures optimize our resources, encourage responsible investments, and ensure that the benefits of our pursuits serve the national interest,” the President noted.
Thus, he urged the stakeholders and investors in the Malampaya Phase 4 Project to build on its success and pursue more energy projects in the future.
“Together, let us shape a Bagong Pilipinas with the foresight to explore, the resolve to develop, and the wisdom to manage our resources responsibly for the benefit of generations of Filipinos to come,” the President said.
