Prime Infrastructure Holdings Inc. of businessman Enrique Razon Jr. announced plans Thursday to acquire a controlling stake in the Malampaya deep-water gas-to-power project, one of the largest and most successful commercial gas finds in the Philippines, from the group of Dennis Uy.
Prime Infra said in a statement negotiations with Uy for a controlling stake in the Malamapaya project kicked off and would close subject to the consent of various parties including the Department of Energy and Philippine National Oil Company Exploration Corp.
“There is a sense of ownership to achieving national energy independence when you bring in Filipino companies to handle the reins of a critical power infrastructure and this is what Prime Infra aims to do with our participation in Malampaya. We will invest and sustain the development and production of domestic gas as long as the terms of the operating license and the natural resources permit,” said Razon, chairman of Prime Infra.
Under the plan, Prime Infra and Udenna will become the new operators of the Malampaya project, taking over from Shell Philippines Exploration B.V. The two parties said they plan to ensure the continuity of Malampaya as long as the reserves support it.
“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 Razon.
Prime Infra said Malampaya’s service contract would expire in 2024, and the company plans 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.
Udenna expressed optimism about the participation of Razon Group in Malampaya.
“We look forward to this opportunity to partner with Prime Infrastructure and PNOC EC, as we explore more ways to fulfill our common vision to make Malampaya sustain its capability to meet the urgent energy security need of the Philippines,” said Uy.
