Philippines makes first natural gas discovery in more than a decade

Philippine President Ferdinand Marcos Jr said on Monday gas and condensate had been found at a well close to the existing Malampaya gas field off the island of Palawan, the country’s first natural gas discovery in more than a decade.

The well, called Malampaya East One or MAE-1, is estimated to contain about 98 billion cubic feet of gas in place, equivalent to almost 14 billion kWh of electricity in one year, Marcos said.

“Initial test results show that the well flowed at 60 million cubic feet per day. 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,” Marcos said in a post on Facebook.

The well is about 5 km east of the Malampaya gas-to-power project, the Philippines’ only indigenous source of natural gas, with exploration also underway in nearby prospects within the block.

The project is operated by the Service Contract 38 consortium, a local venture led by Prime Energy in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

The Philippines, a country of 110 million people that has South-east Asia’s most coal-dependent power grid, is keen to boost its use of gas and renewable energy for power generation to meet rising demand.

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

It was on track in 2025 to register its first decline in coal-powered electricity output for the first time in 17 years, according to market and government data, due to rising liquefied natural gas-fired power generation.

“Aside from natural gas, the discovery also includes condensate, a high-value liquid fuel. These additional resources can help support the government’s efforts to stabilise our power supply,” Marcos said.

In 2023, Marcos signed an agreement extending the production contract for the Malampaya natural gas block by 15 years and allowing the operator to drill new wells as it seeks to boost output, which has been declining.

SEE ALSO

Before this discovery, experts projected the field to run dry by 2027. The South-east Asian country has opened its doors to liquefied natural gas imports, ensuring continued operations of existing gas-fired power plants. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.