Philippines makes major natural gas discovery
Kristina Maralit,Ed Paolo Salting,Allen Limos
Agence France-Presse
The Manila Times
20 January 2026
(UPDATE) THE Philippines has struck natural gas at Malampaya East-1, the first major discovery in more than a decade, President Ferdinand Marcos Jr. announced Monday.
In a video message posted online, Marcos said this gives “fresh momentum to our efforts to secure a stable and reliable energy supply for the country.” The discovered reservoir is located about five kilometers east of the existing Malampaya field and estimated to contain around 98 billion cubic feet of gas in place.This is equivalent to almost 14 billion kilowatt-hours of electricity per year that could supply electricity to more than 5.7 million households, 9,500 buildings or almost 200,000 schools.
Based on initial testing, the well flowed at 60 million cubic feet per day.
“This indicates that the well has the potential to produce even more, confirming it is a high-productivity resource comparable to the original Malampaya wells,” Marcos said in Filipino.
Aside from the natural gas, the discovery also includes condensate, a high-value liquid fuel that can help support the government’s efforts for the stabilization of the country’s power supply.
“We are proud that Filipinos led this drilling. Most importantly, they completed it without any accidents or environmental incidents,” the chief executive said.
“This is proof that when the government’s direction is clear and our partners are efficient, we can strengthen the country’s energy security,” he added.
Marcos said the achievement was made possible through the work of the SC 38 Consortium led by Prime Energy Resources Development B.V. in partnership with UC38, PNOC Exploration Corp., and Prime Oil and Gas Inc.
“This is proof that with responsible environmental protection and strong collaboration between the government and the private sector, we can achieve a more reliable energy supply for every Filipino,” he said.
Breakthrough
Prime Energy hailed the discovery of a new natural gas field as a breakthrough for Philippine energy independence.
“This gas discovery is a victory of 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 firm said in a statement.
“We thank President Marcos for his leadership, particularly for approving the extension of SC38 and for the enactment of the Philippine Natural Gas Industry Development Act, which provides the stability and confidence needed to pursue continued exploration of additional gas resources,” it added.
Malampaya East-1 is a newly discovered reservoir, confirming the presence of 98 billion cubic feet of additional natural gas and associate condensate. Initial well date indicates volumes equivalent to around one-third of the remaining Malampaya gas volumes.
The next phase of the Malampaya 4 drilling involves the completion and testing of Camago-3, followed by the drilling of Bagong Pagasa exploration well. Malampaya 4 was certified a project of national significance. Since its inception, the Malampaya project has generated more than $13.9 billion in revenues for the government, while reducing dependence on imported fuel.
The Philippines has some of the region’s highest energy costs and faces a looming crisis as the Malampaya gas field, which supplies about 40 percent of power to Luzon, is expected to run dry within a few years.
The discovery, the first in more than a decade, suggested the potential to produce even more, Marcos said.
The Philippines — regularly affected by electricity outages — relies on imported carbon-belching coal for more than half of its power generation.
Energy stakeholders on Monday welcomed the discovery of natural gas at the Malampaya East-1 site in Palawan.
“This milestone is a testament to the world-class capability of Filipino engineers in securing our country’s energy future. Reliable power fuels our everyday life, including the lights in our homes, the continuity of work and enterprise, and the stability our schools, hospitals, and communities depend on,” Energy Secretary Sharon Garin said.
“With this discovery, we will pursue this opportunity with discipline, while maximizing value for Filipinos, upholding environmental stewardship, and ensuring that every milestone strengthens our national interest,” she added.
In line with this, the DOE said it will continue to work closely with the Malampaya consortium and relevant agencies to ensure timely, compliant, and transparent next steps, covering technical evaluation, development planning, and all required regulatory and environmental safeguards, so that potential benefits are converted into real, dependable supply for the grid when ready.
Prime Energy said the first natural gas discovery in Philippine territory in over a decade will help boost the existing field’s remaining recoverable volumes by an estimated 30 percent.
The Malampaya East-1 site is the first major milestone under the Malampaya Phase 4 Drilling Campaign, alongside the Camago-3 and Bagong Pag-asa wells.
Prime Energy is part of the Malampaya Consortium that operates the gas field together with its partners UC38 LLC, PNOC Exploration Corp., and Prime Oil and Gas Inc.
China Bank Capital Managing Director Juan Paolo Collet said the natural gas discovery is huge for the country in terms having enough energy supply in the next few years as there is a chance that there could be more natural gas in the other sites.
“This is a significant discovery that will contribute to national energy security. The additional supply should help make local gas-fired power plants more cost-efficient and competitive, which in turn could translate to cheaper and more reliable electricity for households and businesses. It’s also important to note that this is just one among a number of exploratory wells in the Malampaya area, so there is a chance of discovering more supply,” Collet said.
“Moreover, the latest discovery may encourage investor interest in other potential areas of natural gas deposits in the Philippines. There are major domestic banks who are ready to support the sector,” he added.
'Coal phaseout’
Meanwhile, a church leader has called for a “decisive coal phaseout,” saying the country should invest instead in renewable sources of energy that “serves communities.” Bishop Gerardo Alminaza, president of Caritas Philippines, cited in a pastoral letter on Jan. 18 the experiences of seaweed farmers on Semirara Island — home to the country’s largest open-pit coal mine — where crops allegedly damaged by coal dust and wastewater have wiped out their primary source of income.
“After decades of extraction and billions in profit, many families remain poor, exposed to risk, and uncertain about tomorrow,” Alminaza said.
He said the farmers’ cases were not isolated but part of a broader pattern in which pollution and restricted access to coastal areas forced families into poverty or displacement.
He challenged those who argue that coal is essential to national development and energy security, noting that the Philippines remains heavily dependent on imported coal while electricity prices stay high and vulnerable to global market volatility.
“Coal’s defenders speak of necessity; people live with the consequences. Coal is repeatedly justified as essential to national development and energy security. Energy security that depends on imported coal is neither secure nor just,” he said.
“The Church cannot bless an economy that survives by wounding the poor and exhausting creation. The time to end coal in the Philippines is now. To delay is to choose harm. To act is to choose life,” Alminaza said.
