(PHOTO COURTESY)
TACLOBAN CITY — House Minority Leader Marcelino Libanan is proposing the use of government earnings from the Malampaya Deep Water Gas-to-Power Project to finance a planned fuel storage program of the Philippine National Oil Company (PNOC), aimed at strengthening the country’s energy security.
Rep. Libanan of the 4Ps party-list group, said the royalties generated from Malampaya could support the establishment of coastal petroleum storage facilities, particularly in the Visayas and Mindanao, to serve as buffer stocks during fuel supply disruptions.
He expressed optimism that Malampaya will continue to yield billions in annual revenues following the successful drilling of two additional gas wells. These funds, he noted, are intended for energy development and could be redirected to support PNOC’s long-term infrastructure plans.
Data from the government’s Budget of Expenditures and Sources of Financing showed that royalties from the Malampaya project reached around P200 billion from 2014 to 2024, averaging P18.2 billion annually. The government receives a 60 percent share of the project’s net proceeds.
To help fund the initiative, Libanan also suggested allowing PNOC to retain a larger portion of its earnings, instead of remitting at least half as dividends as required by law, subject to presidential approval.
PNOC derives income mainly through its subsidiary, PNOC Exploration Corporation, which holds a 10 percent stake in the Malampaya project.
Meanwhile, Prime Energy Resources Development B.V. said two new wells are expected to begin supplying gas by the fourth quarter of 2026, potentially extending the lifespan of the gas field.
The Malampaya project remains a key component of the country’s energy mix, supplying about 20 percent of Luzon’s electricity and helping reduce dependence on imported fuel.
(LIZBETH ANN A. ABELLA)
