Malampaya Gas Flows Again to Ilijan Power Plant

The Ilijan power plant in Batangas has resumed operations using indigenous natural gas from the Malampaya deep water gas-to-power project. The resumption of gas supply comes after the rehabilitation and restoration of the Ilijan natural gas receiving facility, which achieved operational readiness in December last year.

The six-month interim agreement between Prime Energy Resources Development B.V., the operator of Malampaya, and South Premiere Power Corp. (SPPC) is set to provide a stable supply of gas to the plant. This deal has significant implications for the country's energy security, as it ensures a reliable baseload power source for the Luzon grid.

The restoration of indigenous gas supply is estimated to reduce generation charges by around P0.36 per kilowatt-hour beginning September, potentially providing relief to consumers.