Department of Energy Secretary Sharon Garin (fifth from left), Prime Energy President and CEO Donnabel Kuizon Cruz (sixth from left), and LNGPH President and CEO Yari Miralao (fourth from left) led the ceremonial admission of indigenous Malampaya gas into the 1,200-megawatt Ilijan Power Plant in Batangas on Sept. 24, marking the return of local gas supply to the facility. Handout
MANILA— Indigenous natural gas from the Malampaya field has resumed supplying the 1,200-megawatt Ilijan Power Plant, Malampaya operator Prime Energy said on Friday.
The company said this restores a critical link in the Philippines' energy infrastructure and paves the way for lower electricity rates.
Energy Secretary Sharon Garin, Prime Energy President and CEO Donnabel Kuizon Cruz, and LNGPH President and CEO Yari Miralao led the ceremonial admission of domestic gas into the Batangas facility on Sept. 24.
“Price stability, affordability, reliability, and energy security—these are among the benefits of using our own Malampaya gas,” Cruz said.
The milestone follows joint efforts by Prime Energy, South Premiere Power Corp. (SPPC), PNOC Exploration Corp., and PSALM to safely restore the Tabangao-Ilijan Pipeline.
Under a six-month Interim Natural Gas Supply Arrangement running from Sept. 1, 2026, to Feb. 25, 2027, SC 38 operator Prime Energy is delivering fuel to SPPC to power the plant.
The return of domestic gas is projected to reduce power generation charges by approximately 36 centavos per kilowatt-hour starting Sept. 1, offering direct rate relief to consumers, Prime Energy said.
The interim deal provides a framework as both companies explore a long-term supply agreement. According to Prime Energy, Service Contract 38 has contributed over $14 billion in revenues to the Philippine government since commercial operations began in 2001.
“What we are celebrating today is not just the admission of Malampaya gas... but also the continued use of critical energy infrastructure built decades ago,” Cruz added.
To sustain domestic production, Prime Energy is continuing investments to extend the field's lifespan, with Malampaya Phase 4 expected to deliver additional gas by the fourth quarter of 2026.