Philippines Announces Significant Natural Gas Discovery To Bolster National Energy Security

Cover image: Generic stock photo

MANILA, Philippines—President Ferdinand Marcos Jr. has announced the discovery of a "significant" natural gas reservoir near the Malampaya field, marking the country's first major find in over a decade.

In a Channel News Asia report, the reservoir, identified as Malampaya East-1 (MAE-1), is located approximately 5 kilometres east of the existing offshore site near Palawan.

President Marcos confirmed that the discovery contains an estimated 2.8 billion cubic metres (98 billion cubic feet) of gas, a volume sufficient to provide power to 5.7 million households for an entire year.

Initial testing showed a flow rate of 60 million cubic feet per day, indicating high productivity comparable to the original Malampaya wells. Aside from natural gas, the discovery includes condensate, a high-value liquid fuel that will further assist in stabilising the national power supply.

This find serves as a critical lifeline for the Philippines, which faces some of the region's highest energy costs and a looming power crisis. The original Malampaya field—responsible for supplying about 40 per cent of Luzon’s power—is projected to run dry within a few years.

While experts from the Institute for Climate and Sustainable Cities noted the find is "relatively small," they emphasised it could extend the operating life of the 500km undersea gas pipeline by two to three years, providing a vital bridge while the country seeks larger offshore resources.

The discovery also highlights a shift in the country's energy strategy.

In 2022, then-president Rodrigo Duterte called a halt to oil and gas exploration in areas of the South China Sea disputed with China, following the termination of talks regarding a joint venture.

Despite this moratorium on disputed waters, the current project was successfully led by an all-Filipino team from the SC-38 Consortium in undisputed territory.

This achievement marks the first milestone of the Malampaya Phase 4 Drilling Campaign, with the government now looking towards the completion of the Camago-3 well and further exploration at the Pag-asa site.