The Philippines has marked its first significant natural gas discovery in more than ten years with the unveiling of resources at Malampaya East-1 (MAE-1), located roughly five kilometers east of the existing Malampaya gas field off Palawan. President Ferdinand Marcos Jr. described the find as a milestone that “gives fresh momentum to our efforts to secure a stable and reliable energy supply for the country.”
High-Productivity Well and Additional Condensate
The newly identified reservoir is estimated to hold around 98 billion cubic feet of gas, capable of generating nearly 14 billion kilowatt-hours of electricity per year. This volume could provide power for over 5.7 million households, 9,500 buildings, or nearly 200,000 schools, illustrating the substantial potential of the discovery.
“This is proof that when the government's direction is clear and our partners are efficient, we can strengthen the country's energy security,” Marcos said in Filipino, highlighting the importance of strategic collaboration in boosting national energy resilience.
According to the President, initial tests showed that the MAE-1 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 shared on Facebook.
The find also includes condensate, a high-value liquid fuel that can complement the natural gas supply. This additional resource is expected to aid the government’s ongoing efforts to stabilize power availability and diversify energy sources.
Strategic Energy Implications
The Malampaya East-1 project is managed 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, home to 110 million people, has one of Southeast Asia’s most coal-dependent power grids and is actively seeking to expand its use of gas and renewable energy to meet rising electricity demand. By 2025, coal-fired power generation was on track to decline for the first time in 17 years, thanks in part to increased adoption of liquefied natural gas.
In 2023, President Marcos extended the production contract for the Malampaya block by 15 years, enabling the operator to drill additional wells to boost output as production from existing wells has been declining. Before the MAE-1 discovery, experts had projected that the field could be depleted by 2027. To maintain power supply, the country has also opened the market to imported liquefied natural gas, supporting continued operations at existing gas-fired plants.
Impact on Filipinos and the Nation
The Malampaya East-1 discovery is expected to significantly enhance the Philippines’ energy security, reduce dependence on coal, and help stabilize electricity costs for households and businesses. For the average Filipino, this could mean a more reliable power supply, increased economic opportunities in energy and related industries, and a step forward in the country’s transition toward cleaner, sustainable energy sources.
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