As the Malampaya gas field, the Philippines’ largest source of natural gas, was projected to run dry by 2027, a major deposit of natural gas promising sufficient fuel to power millions of homes and schools for a year was found.
But according to energy expert Alexander Ablaza, the Philippines needs a clear plan to meet its growing energy demands along with additional long-term gas deposits.
Ablaza, president of the Philippine Energy Efficiency Alliance Inc., said that while the energy efficiency sector “is thrilled with the significant discovery” at Malampaya East-1 (MAE-1), there are key issues to address.
“Will 98 billion cubic feet of gas be sufficient for the country to balance the multisectoral objectives of [its] Downstream Natural Gas Roadmap between the needs of the grid-tied and off-grid natural gas power plants and the market development needs of the demand-side natural gas users in the industrial and transport sectors?” Ablaza told CoverStory on Tuesday.
He said it remains to be seen if MAE-1 could have “the potential supply allocations to kick-start and grow a natural gas demand for applications, such as LNG-fired cold storage, industrial boilers and LNG-fed public transportation such as buses and tricycles.” (LNG refers to liquefied natural gas.)
“Can the country even aspire to pilot innovative, early-stage LNG applications for commercial buildings and the residential sector?” he said.
Despite these uncertainties, Ablaza said, the recent Malampaya discovery “places our energy market back on track as far as the Downstream Natural Gas Roadmap is concerned.” Still, he pointed out, the Philippines would “certainly need additional long-term deposits beyond the successful MAE-1 find.”
‘Significant discovery’
It was President Ferdinand Marcos Jr. who announced the “significant natural gas discovery” in the Malampaya field, the first major discovery in more than a decade.
The President said in a video statement on Jan. 19 that MAE-1, which is about 5 kilometers east of the existing gas source, holds approximately 98 billion cubic feet of gas, enough to generate nearly 14 billion kilowatt-hours of electricity.
This means it can supply electricity to more than 5.7 million households, 9,500 buildings, or about 200,000 schools for one year, he said.
“Initial testing showed that the well flowed at 60 million cubic feet per day. This indicates the well has the potential to produce even more, confirming it is a high-productivity resource comparable to the original Malampaya wells,” Mr. Marcos said, adding:
“This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come.”
Mr. Marcos said that aside from natural gas, the discovery also includes condensate, a “high-value liquid fuel,” that could help support the government’s efforts to stabilize the power supply.
He said MAE-1 is the first milestone under the Malampaya Phase 4 Drilling Campaign, and that Filipinos led the drilling and completed the activity “without any accident or environmental incident.”
“This achievement was made possible through the work of the SC 38 Consortium led by Prime Energy Resources Development B.V., in partnership with UC 38, PNOC Exploration Corp., and Prime Oil and Gas Inc.,” he said.
In May 2023, the President signed the renewal agreement for Malampaya Service Contract 38 for another 15 years, or until Feb. 22, 2039. “This project will reduce our country’s dependence on oil imports and ensure a more stable supply of cleaner energy from an indigenous local source,” he said during the signing ceremony.
‘Victory’ for Filipinos
According to Prime Energy, the fresh discovery is “a breakthrough for Philippine energy independence.”
“This gas discovery is a victory for the Filipino people,” the company owned by the business tycoon Enrique Razon said in a statement.
Prime Energy also said the new gas field reinforces Malampaya’s status “as the nation’s sole indigenous gas source, boosting the existing field’s remaining recoverable volumes by an estimated 30%.”
In her own statement, Energy Secretary Sharon Garin said the discovery of the new gas reservoir showed the “world-class capability of Filipino engineers in securing our country’s energy future.”
“Natural gas is a critical bridge in our energy mix, supporting power reliability while we scale renewables, energy storage, and grid upgrades,” Garin said. “We will pursue this opportunity with discipline: maximizing value for Filipinos, upholding environmental stewardship, and ensuring that every milestone strengthens our national interest.”
Intensified monitoring
The Malampaya gas field, located off the province of Palawan in the West Philippine Sea, is the country’s only producing natural gas source.
The Armed Forces of the Philippines (AFP) announced that it has intensified patrols in the area.
“The AFP continues to intensify its presence and monitoring operations in key strategic areas as part of its broader mission to defend national sovereignty, uphold maritime rights, and ensure the protection of critical infrastructure essential to national development,” it said in a statement.
On Jan. 23, AFP chief Gen. Romeo Brawner Jr. conducted an aerial inspection of Malampaya after a briefing with the Joint Task Force Malampaya on current security measures, ongoing maritime and air patrol operations, and interagency coordination efforts implemented to ensure the continuous and safe operations of the gas field.
Commodore Jay Tarriela, the Philippine Coast Guard spokesperson for the West Philippine Sea, also said that it will “strategically deploy” its assets, such as its 97-meter and 44-meter vessels, as added protection.
Malampaya is located about 55 kilometers from Nacpan Point in El Nido, Palawan, well within the Philippines’ 370-kilometer exclusive economic zone.
In May 2025, two China Coast Guard vessels shadowed a Philippine civilian ship from El Nido en route to the Philippines’ Pag-asa Island in the West Philippine Sea. CS
