New Malampaya Gas Discovery Seen to Boost Energy Security, Ease Power Costs
- January 20, 2026
A major natural gas discovery near the Malampaya gas field is being hailed as a breakthrough that could strengthen the Philippines’ energy security and eventually help reduce electricity costs, government officials said on Monday.
President Ferdinand “Bongbong” Marcos Jr. announced that around 98 billion cubic feet of natural gas were found about five kilometers east of the existing Malampaya field, offshore Palawan. The find, named Malampaya East-1 (MAE-1), is the country’s first significant gas discovery in more than a decade.
In a recorded message, Marcos said the discovery is a critical development as the existing Malampaya reservoir—the country’s only producing offshore gas field—is expected to be depleted within a few years.
Higher Power Potential
“This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come,” Marcos said, adding that initial testing showed the well flowed at 60 million cubic feet of gas per day, suggesting a high production potential comparable to the original Malampaya wells.
According to the president, the new field’s estimated volume could generate nearly 14 billion kilowatt-hours of electricity per year, enough to power about 5.7 million households. He said this could help cushion the impact of Malampaya’s decline, noting that the facility currently supplies about 40 percent of Luzon’s power requirements.
Historic Discovery
Energy Secretary Sharon Garin described the find as “historic,” noting that it is the first major natural gas discovery in the Philippines in around 30 years.
“Malampaya will give us energy security and a cheap source of natural gas,” Garin said in a DZMM interview. “Ang last discovery ng gas sa atin was 30 years ago. This is historic talaga,” (“Our last gas discovery was 30 years ago. This is truly historic”).
Garin said the discovery could eventually help bring down electricity costs, though not immediately. “Opo, hindi immediate pero yes… siguro in a few years bababa at bababa dito dahil dadami ng supply natin” (“Yes, not immediately but eventually… in a few years, rates will go down because our supply will increase”), she said.
Self-Sufficient Supply
The energy chief explained that Malampaya has long supplied a large portion of Luzon’s gas needs, but output has declined over time, driving higher electricity costs. “Ngayon meron tayong discover na sarili natin. So ‘yun na po ‘yung gagamitin natin for the next years para gamitin sa pag-power ng bansa natin ng electricity,” she said (“Now we have our own discovery. That’s what we’ll use in the coming years to power our country”).
Garin estimated that the new find could benefit up to eight million households and help extend the operational life of Malampaya until around 2030.
Filipino-led Drilling
Marcos highlighted that Filipino workers led the drilling of the MAE-1 well, which was completed without accidents or environmental incidents. “Ipinagmamalaki rin natin na Pilipino ang nanguna sa drilling na ito” (“We are proud that Filipinos led this drilling”), he said.
The project is being implemented by the Service Contract 38 (SC 38) Consortium, composed of Prime Energy Resources Development B.V., UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc.
Following the success of MAE-1, the next steps include testing the Camago-3 well and drilling the Pag-asa exploration well to assess additional natural gas potential in nearby areas.
A Turning Point
The discovery comes as the Philippines faces persistent energy challenges—high electricity rates, reliance on imported coal, and recurring power shortages. The MAE-1 discovery is an opportunity to secure a more sustainable energy future and lessen dependence on volatile global fuel markets.
While officials stressed that development and commercial production will take time, the discovery is widely seen as a turning point for the country’s natural gas sector.
“This is one of the biggest news ever in the history of the Department of Energy,” Garin said. “At marami pa pong well” (“And there are more wells to come”).
Source:
https://www.rappler.com/philippines/malampaya-east-natural-gas-discovery-service-contract-38
