Prime Infra to acquire Malampaya gas project off Philippines
Prime Infra Holdings will acquire a controlling stake in Udenna Corporation-led Malampaya deep-water gas-to-power project in the Philippines, it said on June 2.
The acquisition process has kicked off and will close subject to the consent of various parties including the department of energy and the Philippine National Oil Company Exploration Corporation. The transaction will also go through other regulatory and lenders’ approvals within that period.
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“Malampaya’s service contract is set to expire in 2024 making it critical for Prime Infra’s entry to be able to continue operating the project while applying for an extension so it can invest in its expansion, which will sustain the economic and social benefits that Malampaya is providing for the country,” the company said.
Malampaya’s gas supply contract for the 1.2-GW Ilijan power plant expires in July and for other plants under Service Contract 38, the expiry occurs in 2024. Some field production could last until 2027-2029, but supplied volumes are increasingly erratic and unpredictable.
“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 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,” said Prime Infra chairman Enrique K. Razon, Jr.