By Kris Crismundo
MANILA – Drilling operations under Phase 4 of the Malampaya gas-to-power project are set to begin soon as the drillship is scheduled to arrive at its site off northwest Palawan by second half of June 2025.
“Timeline for rig arrival in the Philippines has moved to second half of June from the initial estimated end-of-May schedule. This has come about due to delays in completion of the current drilling of the rig in Malaysia,” the Department of Energy (DOE) said.
DOE Undersecretary Alessandro Sales said in a recent press briefing in Taguig City that the drillship, Noble Viking and three other support vessels are currently at the port in Labuan, Malaysia for final inspections and loading of materials.
The drillship is set to arrive at the northwest Palawan for the drilling of three wells—two for production and one for exploration. Other drilling projects will follow.
Sales said the drilling would take around 150 days, which is expected to conclude by the last quarter of this year. If successful, the output from the new wells could extend Malampaya’s operations by 2034, up from the current projection of 2029.
“The actual hookup and pipelining to connect the two new wells to the existing production facilities will be undertaken immediately after, to begin in the last quarter of this year,” Sales added.
Malampaya currently supplies 1.2 to 1.3 gigawatts (GW) of electricity, below its former output due to declining reserves. The energy department hopes to boost the Malampaya natural gas production to 1.5 to 1.7 GW.
“The third well will be an exploration well, and hopefully with the good results on the exploration well called the ‘Bagong Pag-asa,’ this will provide additional volumes for the field to produce,” Sales said.
Meanwhile, imported liquefied natural gas (LNG) is being used to fill the shortfall through two LNG terminals in Batangas. The Marcos administration considers natural gas as a vital strategy to a long-term energy transition, making it a transition fuel from coal to renewable energy. In 2023, natural gas accounted for 22 percent of power generation.
“Right now, of the country’s total primary energy supply, more than half, or 54% is imported,” DOE Secretary Raphael Lotilla said, noting that coal makes up 63% of the Philippines’ power generation, with 83% of coal supply being imported — 99.5% of which came from Indonesia.
“So, the diversification of fuels, including renewable energy and natural gas, are vital elements in this (energy transition). And of course, the remaining movement to the potential for future contributions even of nuclear power,” the energy chief said.
Aside from Malampaya, the DOE is ramping up exploration activities in other parts of the country, including the East Palawan and Sulu Sea basins, where up to five service contracts are in various stages of award.(PNA)