A fresh natural gas discovery at Malampaya could secure at least a year’s worth of power for the country and strengthen our long-term energy security, President Ferdinand Marcos Jr. announced on Monday.
In a video message posted on his official Facebook page, Marcos said drilling at the Malampaya East 1 (MAE-1) reservoir in Palawan has uncovered an estimated 98-billion cubic feet of natural gas — one of the biggest finds in more than a decade.
The well was drilled by the SC 38 consortium led by Prime Energy Resources Development B.V. chaired by Enrique Razon, in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.
Located about five kilometers east of the existing Malampaya gas field, the newly discovered reservoir is expected to give a major boost to the country’s power supply.
“This is equivalent to nearly 14 billion kilowatt-hours of electricity in one year. That means it can supply power to more than 5.7 million households, 9,500 buildings, or almost 200,000 schools for an entire year,” the President said.
Marcos said MAE-1 will extend Malampaya’s contribution to the power sector and strengthen the country’s domestic gas supply for many years to come.
Initial tests showed the well flowing at around 60 million cubic feet of gas per day — an encouraging sign, Marcos said.
“This indicates the well has the potential to produce even more, confirming that it is a high-productivity resource comparable to the original Malampaya wells,” he added.
Aside from natural gas, the discovery includes condensate — a high-value liquid fuel that can support efforts to stabilize the country’s power supply.
The President also highlighted the drilling that was led by Filipino engineers and completed without any accidents or environmental incidents.
“MAE-1 is the first milestone under the Malampaya Phase 4 Drilling Campaign, which includes the Camago-2 and the Bagong Pag-asa wells,” he said.
Following MAE-1, the next steps include the completion and testing of Camago-3, and the drilling of the Pag-asa exploration well to tap more potential gas resources.
Lower power costs, eventually
Energy Secretary Sharon Garin said the new discovery would eventually bring down electricity costs, although consumers should not expect immediate relief.
“Malampaya gives us energy security and a cheaper source of natural gas. The last gas discovery we had was 30 years ago. This is truly historic,” said Garin in a radio interview.
She explained that while the benefits won’t be felt right away, the discovery fits into the Department of Energy’s long-term plan.
“Yes, it won’t be immediate. But this is part of DoE’s plans. Once all our renewable energy sources come in, in a few years prices will go down as supply increases. The impact of this will be very good,” she said.
Boost to energy independence
Prime Energy described the discovery as a breakthrough for the country’s energy independence. The MAE-1 find is the first natural gas discovery in Philippine territory in over a decade and could boost Malampaya’s remaining recoverable gas 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.
Prime Energy also thanked President Marcos for approving the extension of Service Contract 38 and for the passage of the Philippine Natural Gas Industry Development Act, which it said provided the stability needed to pursue further exploration.
The Department of Energy (DoE)welcomed the discovery, noting that MAE-1 contains around 98-billion cubic feet of gas in place, with an 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 to secure our country’s energy future,” Garin said.
“Reliable power fuels our everyday life — the lights in our homes, the continuity of work and business, and the stability our schools, hospitals, and communities depend on,” she added.
The DoE said it will continue to work closely with the consortium and other agencies to ensure that the next steps — from technical evaluation to development planning — are carried out in a timely, transparent, and environmentally compliant manner.
According to the department, the newly discovered reservoir could generate around 13.9-billion kilowatt-hours of electricity — enough to power about 5.8-million households, light nearly 2.8-million streetlights for a year, or meet the annual electricity needs of close to 200,000 public schools.
“Natural gas remains a critical bridge in our energy mix as we scale up renewables, energy storage, and grid upgrades,” Garin said. “We will pursue this opportunity with discipline — maximizing value for Filipinos, protecting the environment, and ensuring every milestone serves the national interest.”
Since it began operations, Malampaya has generated more than $13.9 billion in government revenues and has significantly reduced the country’s dependence on imported fuel.