[June 20, 2025] Prime Energy President & CEO, Donnabel Kuizon Cruz at the Philippine Infrastructure and Construction Club [Photo by the author]
Prime Energy Resources Development (Prime Energy) reaffirmed its commitment to energy security through the Malampaya gas-to-power project, the country’s first and only indigenous natural gas asset.
Prime Energy President & CEO, Donnabel Kuizon Cruz, said the project, operated under Service Contract 38 in partnership with PNOC Exploration Corporation and Udenna Corporation, remains vital to ensuring Luzon’s energy backbone and delivering benefits to millions of Filipinos.
Cruz was one of the guest speakers during the recent Philippine Infrastructure and Construction Club Luncheon held last June 20, 2025.
Prime Infrastructure Capital (Prime Infra), through its subsidiary Prime Energy Resources Development B.V. (Prime Energy), acquired the 45% operating stake in the Malampaya deep water gas-to-power project from Shell Philippines Exploration B.V. (SPEX) in November 2022.
The Malampaya project is vital for the security of energy supply in the Philippines since it supplies a great portion of Luzon's electricity.
During her speech, Cruz recalled a visit to a remote fishing village in northern Palawan, where residents lived without electricity until the Malampaya Foundation helped establish a solar-powered microgrid.
Before this, students endured two-hour boat rides daily just to charge their laptops and phones, while families had limited hours for fishing and farming due to nightfall.
“It was heartbreaking to hear these stories,” she said, emphasizing how access to power transforms lives and opportunities for local communities.
Since its first commercial operation in 2001, Malampaya has been credited with stabilizing Luzon’s energy supply, ending the debilitating 18-hour rotating brownouts of the 1990s, while remitting around $40 billion in revenues to the government.
This achievement paved the way for the retirement of older coal and diesel plants, and reduced dependence on imported fuel by 30%. At its best, Malampaya powered up to 40% of Luzon’s electricity requirement. Cruz described the project as a “story of patriotism and Filipino dedication to securing the nation’s energy future.” [1]
Even after Razon-owned Prime Infra took over its reins, Malampaya remains operated by an all-Filipino team, generating thousands of local jobs and supporting industries such as engineering, construction, logistics, and marine services.
Beyond energy, Malampaya is also involved in sustainability and community development. Through the Malampaya Foundation, it has supported 115 microenterprises across Palawan, Mindoro, and Batangas, trained locals in construction and small business management, and partnered with 34 conservation groups.
The foundation also established 58 marine protected areas that have boosted fish biomass, improved coral reef health, and enhanced biodiversity. There are projects and initiatives of the foundation for the benefit of coastal communities reliant on fishing for their livelihoods. [1]
Energy Security at Risk Without Exploration
Despite its legacy, Malampaya’s future faces uncertainty. Due to the natural decline of the gas field and lack of exploration over the past 12 years, its contribution to Luzon’s power supply has dropped from 40% to 20%. Without new indigenous gas exploration, Malampaya could cease production as early as 2027, forcing the country into greater reliance on costly imported fuel.
Energy leaders have warned this could expose Filipinos to crises similar to the 1990s blackouts or recent global shocks, such as soaring LNG (liquefied natural gas) prices during the Ukraine-Russia war. They stress that urgent action is needed to secure the country’s energy backbone and safeguard both economic stability and reliable power supply.
Embarking on Ambitious Strategy
In a news release last July, Prime Energy announced that they are charting ambitious course for the Philippine’s energy security to extend Malampaya’s life. The company also seeks new gas frontiers.
Speaking at the Asia Pacific Energy Council Capital Assembly in Singapore, Cruz mentioned plans to evolve the company beyond its current operations, focusing on new exploration, acquisitions, and the continued extension of Malampaya's lifespan.[2]
"Prime Energy’s vision and purpose have been very clear to us from the start: we aim to be a world-class Filipino energy company providing long-term energy security to Filipinos," Cruz stated, emphasizing the company's proven record in asset operation and project execution.
"We've proven we can operate assets well and rig up a major project in record time. Now we are looking beyond our boxes, and evolve as an exploration company, too."
To achieve this, Prime Energy has partnered with Ratio Petroleum to explore Service Contract 76 in the East Palawan Basin. The company is also actively pursuing farm-in opportunities in oil and gas blocks both domestically and internationally, with Cruz expressing a desire for "more oil and gas hubs in the Philippines, operated by generation upon generation of Filipino experts."
These efforts, she added, are vital to developing indigenous gas resources, meeting rising energy demand, and reducing the country's vulnerability to volatile global fuel markets. Prime Energy has additionally entered the deal process for acquiring international brownfield assets. [2]
These expansion efforts reinforce Prime Energy's ongoing commitment to the Malampaya project. Phase 4 development, a significant $893 million investment and one of the largest upstream energy projects in the Philippines in over a decade, commenced last July. This phase involves drilling two new deepwater wells, which will be connected to the existing platform via a complex 12-kilometer subsea pipeline laid at depths of up to 1.2 kilometers, making it one of the most challenging underwater projects in the Asia Pacific region.
"With these two new production wells, we hope to extend Malampaya life and sustain revenue remittances to the government as we continue to explore new gas sources," Cruz explained.
In parallel, Prime Energy is slated to drill an exploration well in a promising new field designated Bagong Pag-Asa.
Cruz attributed the company's expanded initiatives in part to recent supportive government decisions, particularly the extension of Service Contract 38 until 2039 and the enactment of the Philippine Natural Gas Industry Development Act.[2]
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For more information:
About Malampaya – https://malampaya.com/
About Philippine Infrastructure and Construction Club Luncheon - https://picc.com.ph/
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Reference:
[1] Kuizon Cruz, Donnabel (June 20, 2025). "Securing Luzon’s Energy Backbone: Prime Infra’s Role in Malampaya’s Extended Life and Beyond". A presentation during the Philippine Infrastructure and Construction Club Luncheon.
[2] (July 1, 2025) "Prime Energy pushes indigenous gas growth beyond Malampaya". Inquirer.net. https://business.inquirer.net/533599/prime-energy-pushes-indigenous-gas-growth-beyond-malampaya
