Malampaya Gas Revives Philippine Energy Infrastructure

The Philippines' decades-old gas-to-power infrastructure has received new life as Malampaya gas returns to the Ilijan Power Plant. The restored Tabangao-Ilijan Pipeline is now operational, with indigenous gas flowing to Ilijan under a six-month interim supply arrangement between Prime Energy Resources Development B.V. and South Premiere Power Corp.

The agreement allows Prime Energy, operator of Service Contract 38, to supply Malampaya gas to SPPC from September 1 to February 25, 2027. This move is expected to cut generation charges by approximately P0.36 per kilowatt-hour.

LNGPH President and CEO Yari Miralao stated that bringing Malampaya gas back to Ilijan is about 'putting our existing energy infrastructure to work' and making the most of local resources. The resumption of indigenous gas supply will help translate local energy resources into dependable electricity for Filipino consumers.

The six-month deal could pave the way for a longer-term supply arrangement between Prime Energy and SPPC, as efforts continue to extend Malampaya's productive life. Malampaya Phase 4 is targeted to deliver additional domestic gas in the fourth quarter of this year.