Malampaya gas returns to Ilijan with power cost relief in sight

The return of domestic gas to Ilijan is expected to contribute about 36 centavos per kilowatt-hour in lower generation charges beginning Sept. 1, potentially providing some relief to consumers as power costs remain a major household and business expense.

Energy Secretary Sharon Garin , Prime Energy president and CEO Donnabel Kuizon Cruz , and LNGPH president and CEO Yari Miralao led the ceremonial admission of Malampaya gas into Ilijan on Sept. 24, together with representatives from the Department of Energy, PNOC Exploration Corp., Power Sector Assets and Liabilities Management Corp. and the Service Contract 38 Consortium.

Under an interim natural gas supply arrangement, Prime Energy, operator of Service Contract 38, is supplying Malampaya gas to South Premiere Power Corp. for the Ilijan plant. The agreement covers six months, from Sept. 1, 2026 to Feb. 25, 2027.