MANILA - The Malampaya consortium will start drilling off the waters of Palawan by late 2024, the Department of Energy said on Wednesday.

Malampaya, which is jointly owned by the government, Dennis Uy’s Udenna Corp and Enrique Razon’s Prime Energy Resources, is also expecting to begin natural gas production by 2026, DOE said.

This follows the government’s 15-year renewal of Malampaya’s franchise, which was supposed to expire in 2024.

Energy Secretary Raphael Lotilla said Malampaya will provide a reliable backup to renewable energy sources such as wind and solar, which tend to diminish in efficiency depending on the weather.

“We need natural gas to complement those volatilities we look forward to a mroe stable supply for the country esp in the power sector,” Lotilla said.

President Ferdinand Marcos Jr said he also expects power supply to become more stable and affordable with the operation of Malampaya.

Press Secretary Cheloy Garafil said the expansion of the gas field development includes the blending of imported liquified natural gas (LNG) based on discussions with Prime Energy.

"The energy operator discussed with the President its plans to explore and develop indigenous gas prospects; supplement the current indigenous gas production with LNG imports through a gas aggregation framework; and, enable the stability, competitiveness, and expansion of the country’s gas market," Garafil said in a statement.

• Enrique Razon says all-Filipino Malampaya consortium should be 'source of pride'

Marcos agreed with the proposal, with the Palace saying the blended gas would be made available "to all gas power plants at the same price."

Energy Undersecretary Alessandro Sales in mid-May said around 210 billion cubic feet of gas reserves could be developed near the gas field.

Malampaya supplies natural gas to the Sta. Rita (1,000 megawatts), San Lorenzo (500 megawatts), Ilijan (1,200 megawatts), San Gabriel (414 megawatts), and Avion (97 megawatts) power plants in Luzon, according to the Philippine National Oil Company (PNOC).

Data from the PNOC showed that total government share from the revenues of the project as of December 2020 was at $11.9 billion.

Meanwhile, Lotilla said the DOE is coordinating with other agencies to study the country’s possible adoption of nuclear energy.

Marcos earlier said the Philippines is “open” to other sources of power, including nuclear technology.

- With a report from Alvin Elchico, ABS-CBN News

• Marcos extends Malampaya gas field contract until 2039
• Marcos says 'open' to nuclear power technology

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