Philippines Makes First Natural Gas Discovery In More Than A Decade Near Malampaya

The Philippines has recorded its first natural gas discovery in more than a decade, with gas and condensate identified at a new well near the Malampaya Gas Field off the coast of Palawan.

President Ferdinand Marcos Jr. said the well, known as Malampaya East One (MAE-1), is estimated to contain around 98 billion cubic feet of gas in place, enough to produce nearly 14 billion kilowatt-hours of electricity in a year.

STRONG EARLY RESULTS SIGNAL HIGH POTENTIAL

Initial testing has delivered encouraging results.

“Initial test results show that the well flowed at 60 million cubic feet per day,” 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.”

The MAE-1 well is located about 5 kilometers east of the existing Malampaya gas-to-power project, which remains the country’s only major domestic source of natural gas.

CRITICAL SUPPORT FOR ENERGY SUPPLY

The discovery comes at a crucial time for the Philippines.

Malampaya has been the backbone of the country’s gas-powered electricity generation, but output has been declining after decades of use. Prior to the new find, projections suggested the field could run dry by 2027.

The addition of new reserves could help extend the life of domestic gas production and support efforts to maintain stable electricity supply.

CONDENSATE ADDS EXTRA VALUE

In addition to natural gas, the discovery includes condensate, a high-value liquid fuel that can be used in various energy applications.

“Aside from natural gas, the discovery also includes condensate… These additional resources can help support the government’s efforts to stabilize our power supply,” Marcos said.

This dual output increases the economic value of the project and strengthens its role in the national energy mix.

PART OF A BROADER ENERGY STRATEGY

The Philippines is working to reduce its heavy reliance on coal while meeting rising energy demand.

With a population of over 110 million, the country has one of Southeast Asia’s most coal-dependent power systems. However, the growing use of liquefied natural gas has begun to shift that balance.

In 2025, the country was on track to record its first decline in coal-generated electricity in 17 years, driven by increased gas-fired power generation.

ONGOING EXPLORATION AND INVESTMENT

The Malampaya block continues to attract investment and exploration activity.

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

In 2023, the government extended the Malampaya production contract by 15 years, allowing operators to drill new wells in an effort to boost output.

LOOKING AHEAD

While the discovery is promising, further evaluation and development will be needed before full-scale production begins.

For now, the find offers renewed optimism for the Philippines’ energy future, suggesting that offshore exploration could continue to uncover resources capable of supporting long-term power needs.