A new Malampaya gas discovery could secure power, curb electricity costs, and slash fuel imports—giving the country a critical energy buffer as global markets tighten.

Razon-led Prime Energy Resources Development B.V, Malampaya operator under Service Contract (SC) No. 38, described the discovery as a breakthrough for the country’s energy independence. 

The find, announced by President Ferdinand Marcos Jr. on Monday, is the first natural gas discovery in local territory in over a decade that could boost the existing field’s remaining recoverable volumes by an estimated 30 percent.

“This gas discovery is a victory for the Filipino people. When we assumed operatorship, we committed to the President and the nation to breathe new life into Malampaya and revitalize the indigenous natural gas sector. Today, we are delivering on that commitment,” the company said.

“We thank President Marcos for his leadership, particularly for approving the extension of SC 38 and for the enactment of the Philippine Natural Gas Industry Development Act, which provides the stability and confidence needed to pursue continued exploration of additional gas resources,” it added.

The Department of Energy (DOE), meanwhile, welcomed the discovery of a natural gas reservoir at Malampaya East 1 (MAE-1), located about five kilometers east of the existing Malampaya field, and estimated at around 98 billion cubic feet of gas in place, with initial test flow of 60 million cubic feet per day and associated condensate.

“This milestone is a testament to the world-class capability of Filipino engineers in securing our country’s energy future,” Energy Secretary Sharon S. Garin said. 

“Reliable power fuels our everyday life: the lights in our homes, the continuity of work and enterprise, and the stability our schools, hospitals, and communities depend on,” she added.

The DOE said it will continue working closely with the consortium and relevant agencies to ensure timely, compliant, and transparent next steps, covering technical evaluation, development planning, and all required regulatory and environmental safeguards.

MAE- is a newly discovered, previously untapped reservoir, containing 98 billion cubic feet of natural gas and associated condensate—about one-third of the remaining producible Malampaya volumes.

The DOE said this could generate roughly 13.9 billion kilowatt-hours of electricity, enough to power 5.8 million households, light 2.78 million streetlights for a year, or meet the annual electricity needs of nearly 198,450 public schools.

“Natural gas is a critical bridge in our energy mix, supporting power reliability while we scale renewables, energy storage, and grid upgrades,” Garin said.

“We will pursue this opportunity with discipline: maximizing value for Filipinos, upholding environmental stewardship, and ensuring that every milestone strengthens our national interest.”

The next phase of the Malampaya Phase 4 drilling campaign includes completing and testing Camago-3, followed by the Bagong Pag-asa exploration well. The project has been certified as a Project of National Significance.

Since its launch, Malampaya has generated over $13.9 billion in government revenues and significantly reduced the country’s reliance on imported fuel.