Malampaya natural gas field (File photo)
PH | Royalty payments for Malampaya could reach P20 billion – solon | MANILA – A lawmaker said on Tuesday that the Malampaya natural gas field is expected to give the national government PHP20,2 billion in royalties this year.
Rep. Johnny Pimentel of Surigao del Sur said that the amount is PHP5.7 billion, or 22 percent, less than the PHP25.9 billion the government got from Malampaya in gas taxes in 2022.
“The government expects to get less money from Malampaya between now and 2026 because gas production from five existing wells is going down,” Pimentel said.
Pimentel said that based on the government’s Budget of Expenditures and Sources of Financing for 2024, Malampaya taxes are expected to reach PHP13.5 billion in 2024, PHP8.5 billion in 2025, and another PHP8.5 billion in 2026.
“All of these estimates are close. The real royalties might end up being bigger. In fact, the government thought it would get only PHP24.3 billion in royalties in 2022, but it got PHP25.9 billion, which is PHP1.6 billion more than expected,” Pimentel said.
Even though royalties are expected to go down because current wells aren’t producing as much gas as they used to, Pimentel said he is sure that the Malampaya consortium “will eventually be able to find and extract additional gas supplies from upcoming new wells.”
Pimentel said that Malampaya’s existing production wells have been giving off gas for 21 years and, based on earlier estimates, might run out of gas by 2027.
Energy Secretary Raphael Lotilla has said that the Malampaya consortium is on track to start drilling new wells by the end of 2024. More gas production is expected by 2026.
At the moment, Malampaya sends gas to power plants in Batangas, which make up to 20% of the country’s energy needs. (via PNA)
