Prime Energy Inks Deal to Supply Ilijan Power Plant with Malampaya Gas

Prime Energy has signed an agreement to supply indigenous natural gas to South Premiere Power Corporation's (SPPC) Ilijan Power Plant in Batangas. The Interim Natural Gas Supply Arrangement is expected to reduce fuel costs by an average of P0.36 per kilowatt-hour and lower electricity prices for consumers. According to Prime Energy, the Malampaya gas will be supplied to the Ilijan Power Plant from September 1, 2026 to February 25, 2027.

The deal is seen as a way to reduce fuel costs by replacing more expensive imported fuel with indigenous natural gas. Donnabel Kuizon Cruz, president and CEO of Prime Energy, said that this arrangement demonstrates the importance of indigenous Malampaya gas in lowering electricity costs for consumers while delivering reliable energy supply.

Malampaya continues to play a critical role in delivering affordable, reliable, and cleaner energy. The project has contributed more than $14 billion in revenues to the Philippine government over the past two decades. Under the fiscal terms of Service Contract No. 38, approximately 40% to 60% of every peso of Malampaya's net proceeds accrues to the Philippine government.