Malampaya Consortium Secures Gas Supply Deal with First Gen Subsidiaries

Manila, Philippines—Prime Energy Resources Development B.V. (Prime Energy) announced the signing of a long-term Gas Sale and Purchase Agreement (GSPA)  by the Malampaya consortium with the wholly-owned subsidiaries of First Gen Corporation (First Gen) that own gas-fired power plants. The new GSPA will continue the supply of Malampaya gas to the power plants with their gas supply contracts expiring in 2024.

The Malampaya consortium and First Gen formally presented the new GSPA to DOE Undersecretary Alessandro O. Sales in a ceremony at the Department of Energy. Also in attendance were DOE Undersecretary Sharon S. Garin, Director Augustus Cesar A. Navarro, Guillaume Lucci, President and CEO of Prime Infra, Donnabel Kuizon Cruz, Managing Director and General Manager of Prime Energy, Kiril Caral and Cha Choa from Prime Energy, Teod Delfin from First Gen along with representatives of PNOC-EC, UC38 LLC.

The landmark deal will ensure continued supply of indigenous fuel to four gas-fired power plants in Batangas with a combined capacity of 2,011 Megawatts (Santa Rita, San Lorenzo, San Gabriel and Avion power plants).

According to Donnabel Kuizon Cruz, Managing Director of Prime Energy: “This is a significant achievement that will contribute to the Philippines’ energy security. We are very grateful for the support of the Department of Energy, First Gen, and our partners in the Malampaya consortium in the successful negotiation and signing of the new GSPA.”  

Meanwhile, Prime Energy and its partners (UC38 LLC, PNOC Exploration Corporation and Prime Oil and Gas, Inc.) are ramping up preparations to drill at least two deepwater wells in 2025 (Camago and Malampaya East) to potentially increase and extend gas supply from Malampaya. Production from the new wells is expected in 2026. 

The Santa Rita and San Lorenzo power plants have been using Malampaya gas since 2001.  The San Gabriel and Avion power plants started using Malampaya gas in 2017 after the completion of Malampaya Phase 2 and 3.

Malampaya is a National Government project under the Department of Energy.  Prime Energy and its joint venture partners (UC38 LLC, PNOC Exploration Corporation, Prime Oil and Gas, Inc.) operate the Malampaya Project under Service Contract No. 38 with the Government.  To learn more about Prime Energy and the Malampaya project, visit malampaya.com.