Prime Infra to acquire controlling stake in Philippines’ Malampaya gas project

The gas project supports 20% of the country’s electricity requirement.

Prime Infra Holdings, Inc. is planning to acquire a controlling stake in the Malampaya deep-water gas-to-power project. 

“Natural gas is a critical transition fuel and the modern, state-of-the-art infrastructure built to harness this valuable transition fuel attracted us to pursue this deal – all aspects of the project ticks off our environmental, social, and governance (ESG) check list that will allow us to contribute more to the country’s transition from expensive and volatile coal and imported fuel prices to affordable cleaner and domestic energy resources like natural gas,” Prime Infra Chairman Enrique K. Razon, Jr. said in a statement.

According to Prime Infra, the acquisition process has taken off and is expected to close upon the approval of the Philippines’ Department of Energy and the Philippine National Oil Company Exploration Corporation. 

The Malapaya gas project supports up to 20% of the electricity requirement in the country. Its service contract is set to expire in 2024, which makes Prime Infra’s entry more critical, the company noted.

The acquisition will in effect allow Prime Infra and Udenna to take over as operators of the gas project, in place of Shell Philippines. In this light, Prime Infra is expected to continue the operations of the gas project, whilst also investing in its expansion.

“We will invest and sustain the development and production of domestic gas as long as the terms of the operating license and the natural resources permit,” Razon also said.