The Filipino infrastructure company Prime Infra is set to acquire a controlling stake in the Malampaya deep-water gas project from Udenna, which owns 90% in the gas project since the acquisition of Chevron’s and Shell’s 45% stakes. The sale is subject to the consent of different parties, including the Department of Energy and the Philippine National Oil Company Exploration Corporation (PNOC-EC), which owns the remaining 10% stake in Malampaya.
The Malampaya gas project, located off the coast of Palawan, began operating with a first offshore platform in 2001. Phase 2 was completed in 2013 and phase 3 in 2015, with the addition of a second platform. It is one of the largest gas finds in the Philippines, as it produces over 12 mcm/d of gas and supply gas to 3 power plants (2.7 GW) generating enough power to meet 20% of the country’s electricity needs. The project is expected to be decommissioned between 2027 and 2029 after a projected decline in output by 2024 (the year of expiration for the service contracts with companies). Prime Infra intends to apply for an extension and continue operating the project as long as the natural resources permit.