In a landmark development for the Philippine energy sector, President Ferdinand R. Marcos Jr. officially announced on Monday, January 19, the discovery of a significant natural gas reservoir at the Malampaya East-1 (MAE-1) well. Located approximately five kilometers east of the existing Malampaya field offshore Palawan, this find marks the country’s first major gas discovery in over a decade.
Powering Millions of Filipino Homes
The President revealed that the newly discovered reservoir is estimated to contain approximately 98 billion cubic feet of natural gas. To put this scale into perspective, the discovery is equivalent to nearly 14 billion kilowatt-hours of electricity annually.
“This means it can supply electricity to over 5.7 million households, more than 9,000 buildings, or nearly 200,000 schools in a single year,” President Marcos stated.
Beyond gas, the site also contains condensate—a high-value liquid fuel. This byproduct is expected to play a crucial role in stabilizing the national power supply and cushioning the impact of global fuel price fluctuations.
Strengthening Domestic Energy Independence
The timing of the MAE-1 discovery is critical. The original Malampaya field, which currently provides about 40% of Luzon’s power requirements, is expected to deplete within the next few years. This new find provides a much-needed “bridge,” ensuring that the Philippines can maintain a domestic source of energy rather than relying solely on expensive, imported fossil fuels.
Initial flow tests recorded 60 million cubic feet of gas per day, a figure the President noted indicates high productivity comparable to the original, highly successful Malampaya wells.
A Proudly Filipino Achievement
The drilling of the MAE-1 well is a milestone for local expertise. President Marcos took the opportunity to laud the Filipino workforce involved in the project, noting that the drilling was completed safely and without any environmental incidents.
“We are proud to say that Filipinos led this drilling,” the President remarked in his address, highlighting the technical capability of the local workforce in managing complex offshore operations.
What’s Next for Malampaya?
The MAE-1 discovery is just the first phase of the Malampaya Phase 4 Drilling Campaign. The project is being carried out by the SC 38 Consortium, led by Prime Energy Resources Development B.V., in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.
Moving forward, the consortium will begin testing the Camago-3 well and drilling the Pag-asa exploration well. These efforts aim to uncover even more resources to secure the nation’s energy future for decades to come.