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15-day maintenance shutdown of Malampaya facility completed

The Department of Energy (DOE) on Monday announced the completion of the first maintenance shutdown of the Malampaya Deepwater Gas-to-Power under an all-Filipino owned consortium.

In a statement, the DOE said the 15-day maintenance works from February 4 to 18, 2023 were completed with no incidents recorded, covering the platform, pipelines, and the entire system.

Prime Energy was said to have resumed the delivery of Malampaya power plants at 12:01 a.m. on Sunday, February 19, as scheduled.

“Prior to the commencement of the work scope, the DOE together with Prime Energy, conducted numerous engagements with the stakeholder communities, local government units, and other government agencies particularly in the vicinity of the Onshore Gas Plant in Batangas,” it said.

“This was done to ensure awareness during the course of the works, particularly during flaring activities,” it added.

The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW)—providing up to 30% of the power generation needs of Luzon.

Connected to onshore gas plants in Batangas, the Malampaya offshore facility in Northern Palawan was inaugurated in 2001.

The DOE last October gave the go signal for Razon-led Prime Infrastructure Capital Inc. to acquire the 45% interest of Shell Philippines Exploration BV (SPEX) in the Malampaya Service Contract 38.

“While major regular maintenance works have been carried out over the last two decades, this is the first time under an all-Filipino owned consortium,” the DOE said.

Prime Infra completed the acqusition of the 45% stake last November, and renamed the SPEX to Prime Energy Resources Development B.V.

Prime Infra in July announced that its unit Prime Exploration Pte. Ltd. inked a share purchase agreement to acquire Malampaya Energy from from Davao-based businessman Dennis Uy’s Udenna Corp.

Uy’s Malampaya Energy inked a share purchase deal with Shell Petroleum N.V. to acquire SPEX in May 2021, but this did not push through after the Philippine National Oil Company Exploration (PNOC-EC) withdrew its consent.

Prior to Uy’s acquisition of Chevron’s participating stake and the Razon Group’s buyout of SPEX, Malampaya Consortium was composed of SPEX, Chevron, and the PNOC-EC — which still holds 10% interest in the gas field.

Prime infra also earlier committed to expand gas production and look into developing nearby gas fields— RSJ, GMA Integrated News