Fresh Malampaya gas by year-end to ease power strains

A new gas injection from the Camago-3 well could help stabilize the Philippines’ power grid before the end of the year.

Prime Energy, operator of Service Contract No. 38 (SC 38), said on Thursday that Malampaya Phase 4 (MP4) remains on track following a major drilling breakthrough. Camago-3 produced up to 60 million standard cubic feet per day (mmscf/d) during testing, significantly boosting the field’s remaining reserves.

The well contains about 2.5 times the recoverable gas volumes of the Malampaya East-1 (MAE-1) discovery announced in January, effectively doubling Malampaya’s extractable reserves. Together, the two discoveries are expected to extend the field’s life by roughly six years, a move seen as crucial for stabilizing Luzon’s electricity supply.

For the first time since Malampaya began commercial operations in 2000, new subsea pipelines are being installed, reviving large-scale offshore construction and strengthening long-term energy security.

The next step is the drilling of Bagong Pag-asa, an exploration well 30 kilometers north of Malampaya. If gas is confirmed, drill-stem testing will follow to determine production potential.

Malampaya remains a key buffer against global fuel volatility, with a fuel cost equivalent of P4.80 per kilowatt-hour (kWh)—less than half the roughly P10.30 per kWh cost of imported LNG.

MP4, certified as a Project of National Significance, is part of an $893-million development plan. Since its inception, the Malampaya field has delivered over $14 billion to the national government.