Gas discovery in offshore Palawan to boost PH’ energy outlook

The country’s first major natural gas discovery in more than ten years, now named Malampaya East-1 (MAE-1), was located five kilometers east of the Malampaya gas field offshore Palawan, announced President Ferdinand Marcos Jr.

The newly discovered reservoir marks a breakthrough for the Philippines’ domestic energy supply amid rising power demand, with around 98 billion cubic feet of natural gas in place.

Nearly 14 billion kilowatt-hours of electricity per year could be potentially generated in the said reservoir.

“This indicates that the well has the potential to produce even more, confirming it is a high-productivity resource,” Marcos said.

President Marcos highlighted that this gas volume could power about 5.7 million households, roughly 9,500 establishments, or nearly 200,000 schools annually.

MAE-1 is the first milestone under the Malampaya Phase 4 drilling campaign. 

Marcos added the new reservoir proves that our own resources can still support our energy needs and extend Malampaya’s contribution to the country’s domestic gas supply for years to come.

The Malampaya gas field has long been the backbone of the Philippines’ indigenous energy supply

Approximately $893 million was invested in the Malampaya Phase 4 drilling campaign, which further includes an exploration field (Camago-2) and two new deepwater wells (Bagong Pag-asa wells).

This is led by the SC 38 Consortium, with Prime Energy Resources Development B.V. as the operator, in partnership with UC-38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

A valuable liquid hydrocarbon called condensate that can help stabilize the country’s power supply was also discovered.