President’s Hall, Malacañan Palace
May 15, 2023

“As I sign this SC 38 renewal agreement, I also lay stress on the Administration’s commitment to actively pursuing the exploration, development and utilization of the country’s indigenous energy resources, and to optimize our energy mix,” President Ferdinand R. Marcos Jr. emphasized as he approved the extension of the Malampaya Service Contract (SC) No. 38 Consortium for 15 years.

The Malampaya Deep Water Gas-to-Power Project is set to expire next year but is renewed until 24 February 2039 to ensure that the remaining gas reserves are further explored and utilized, which according to President Marcos Jr., serve as a key to the advancement of the nation’s energy security and overall interest.

“Because of the contract renewal, the government will continue to generate revenues from the Project through a favorable sharing scheme,” he remarked, noting that the government was able to generate around PhP374 billion since its commissioning in 2001.

The Chief Executive ordered the Department of Energy (DOE) to ensure smooth implementation of the Project and maintain strategic partnership with the private sector towards the attainment of energy adequacy, reliability and affordability for the Filipino people.

“We are confident in the capability and competence of the SC 38 Consortium in handling the Project. You have committed itself to a firm work program, geared towards developing resources both in the existing and nearby gas fields to provide incremental production,” President Marcos Jr. said.

The Malampaya Project is considered one of the largest and most significant industrial endeavors in the country through a successful joint partnership between the government and the private sector. Since its commercial operations in 2002, the Malampaya Project continues to provide cleaner-burning natural gas that supplies Luzon’s four (4) power plants with a combined capacity of 3,200 megawatts, enough to supply the Island’s 20% energy requirement.

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