Malampaya Phase 4 delivers first gas from new wells

President Ferdinand Marcos Jr. on Thursday lauded the Malampaya Phase 4 (MP4) project, operated by the Razon Group’s Prime Energy, for delivering its first natural gas from the Malampaya East-1 and Camago-3 wells into the existing production system.

Marcos, together with Prime Energy Chairman Enrique Razon, witnessed the ceremonial first flow of gas at the Malampaya Onshore Gas Plant in Barangay Tabangao Ambulong, Batangas City.

“It gives me great pride to be part of this ceremony and to stand with you as we mark the first delivery of natural gas from these newly developed drills and wells. From offshore Palawan, this indigenous natural gas will flow through the Malampaya gas transmission infrastructure to Batangas, and ultimately to the gas-fired power plants serving the Luzon grid,” Marcos said.

The Malampaya East-1 and Camago-3 wells were successfully drilled and tested in the first quarter of 2026, yielding an estimated 222 billion cubic feet of natural gas reserves. Both wells were connected to the existing Malampaya subsea production system in June.

“What does this mean to Filipino families? Sariling gas. Mas maaasahang kuryente. Mas matatag na enerhiya para sa ating bansa. Maximizing the use of Malampaya gas could contribute to more competitive power rates because we are relying less on imported energy sources that are subject to volatile international energy prices,” the President said.

Prime Energy said the milestone reinforces the project's role in sustaining the country's indigenous natural gas supply and extending the productive life of the Malampaya field.

Nearly $1-billion investment

With an investment of nearly $1 billion, MP4 involved drilling two deepwater wells and installing subsea infrastructure to connect them to the existing Malampaya production platform.

The project added an estimated 222 billion cubic feet of recoverable natural gas reserves, capable of generating approximately 31.46 billion kilowatt-hours of electricity—enough to power 13.11 million Filipino households for one year.

MP4 was completed in 27 months from the final investment decision, about five months ahead of schedule and the industry benchmark.

“This achievement reflects the strong coordination across the project, particularly given the complexity of deep water development, which involved multiple contractors and suppliers and required the mobilization of specialized equipment, manufactured components and technical experts from around the world,” Prime Energy said.

MP4 also marked the Philippines’ first offshore drilling campaign in more than a decade. Its execution drew on an international supply chain spanning 17 countries, including Germany, the United Kingdom, Norway, the Netherlands, the United States, Japan, South Korea, Australia, Singapore, Malaysia and the Philippines.

The global network supported the fabrication, refurbishment and delivery of critical subsea components and equipment, including umbilicals, valves, subsea systems, cables, generators, pipelines and wellhead equipment, alongside Philippine-based fabrication and manufacturing capabilities.