Prime Infra’s Malampaya take-over bodes well for the project: Philippines’ DoE
The company announced its plans to acquire a controlling stake in the project.
The plan of Prime Infa Holdings, Inc. to take over Malampaya Deep Water Gas-to-Power Project bodes well both for the consortium and the development of the project, the Philippine government said.
Energy Secretary Alfonso Cusi said the entry of Prime Infra as a partner of the Udenna Corporation could improve the financial standing and technical experience of the consortium.
The company could also help facilitate the progress of Malampaya’s development, which is urgently needed amidst its depleting reserves.
“Should the negotiations push through, the Department of Energy (DoE) looks forward to Shell Philippines Exploration B.V. continuing as the operator of Malampaya and rapidly progressing with the urgent drilling activities required to further develop Malampaya and arrest the depletion,” Cusi said in a statement.
“Without which, at current depletion rates, Malampaya will only be able to provide gas sufficient for 1000 megawatts (MW) of power by 2024 versus 3000MW in 2021.”
This followed the announcement of Prime Infra of its plans to acquire a controlling stake in the Malampaya gas project.
Prime Infra had noted the acquisition process is already underway and is currently pending the approval of the DoE and the Philippine National Oil Company Exploration Corporation.
Cusi noted the interest of Prime Infra to invest in the project affirms the Department’s position that Malampaya remains “economically viable.”