Malampaya Gas Resumes Supply to Philippines' Largest Natural Gas-Fired Facility
The Malampaya gas field in the Philippines has resumed natural gas deliveries to the 1,200-megawatt Ilijan Power Plant in Batangas City, following a six-month interim supply agreement.
The agreement between Prime Energy, operator of Service Contract 38, and South Premiere Power Corp. (SPPC) will help address energy price volatility by reducing the generation charge by 36 centavos per kilowatt-hour.
The Tabangao-Ilijan Pipeline has been restored after collaborative efforts among various parties, including Prime Energy, SPPC, the Philippine National Oil Company-Exploration Corporation (PNOC-EC), and the Power Sector Assets and Liabilities Management Corporation (PSALM).
According to Prime Energy, using natural gas is expected to reduce the price difference between imported spot LNG and indigenous gas by more than USD4 per million British thermal units (mmBtu) at various points.