Prime Energy, SPPC ink Malampaya gas supply deal to Ilijan plant

<p>Razon-led Prime Energy, the operator of Malampaya gas-to-power project, on Thursday said it signed an agreement to supply indigenous natural gas to South Premiere Power Corporation's (SPPC) 1,200-megawatt Ilijan Power Plant in Batangas.</p><p>In a news release, Prime Energy said the Interim Natural Gas Supply Arrangement with SPPC is "expected to reduce fuel costs by an average of P0.36 per kilowatt-hour and help lower electricity prices for consumers."</p><p>Under the deal, the company said Malampaya gas will be supplied to the Ilijan Power Plant from September 1, 2026 to February 25, 2027, which could help reduce fuel costs by replacing more expensive imported fuel with indigenous natural gas.</p><p>Prime Energy, citing Meralco's estimates, said a generation charge savings of approximately P0.36 per kilowatt-hour could be expected beginning September.</p><p>"This demonstrates that indigenous Malampaya gas can help lower electricity costs for consumers while delivering reliable energy supply," said Donnabel Kuizon Cruz, president and CEO of…