The Philippines has discovered a new offshore gas deposit, Malampaya East 1, about 5 km east of the main Malampaya field. Estimated reserves are roughly 98 billion cubic feet (2.7 billion cubic meters) with initial flow tests around 60 million cubic feet per day. The find — which includes condensate — could help supply over 5.7 million households and ease pressure on Luzon’s power grid, but further testing and drilling are needed to confirm commercial viability.
Philippines Announces Major Offshore Gas Find — Malampaya East 1 Could Ease Looming Power Shortfall
FILE - Philippine President Ferdinand Marcos Jr., waves during his keynote speech at the Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea, Friday, Oct. 31, 2025. (AP Photo/Ng Han Guan, File)(ASSOCIATED PRESS)
Philippine President Ferdinand Marcos Jr. announced the discovery of a new undersea natural gas deposit, Malampaya East 1, northwest of Palawan province. The discovery, made about 5 kilometers east of the main Malampaya field, could bolster the country's domestic gas supply and help avert a potential power crunch in Luzon.
Key Findings and Potential
Officials estimate the reservoir contains roughly 98 billion cubic feet (2.7 billion cubic meters) of gas. Initial tests indicate the well could produce about 60 million cubic feet (1.6 million cubic meters) per day, though authorities did not provide a timetable for commercial production and said additional testing and a follow-up drilling campaign are planned to confirm the find's full potential.
Energy Security and Economic Value
President Marcos said the new deposit could ultimately supply electricity for more than 5.7 million households or power nearly 200,000 schools for a year. The discovery also includes condensate, a high-value liquid hydrocarbon that can increase the economic return of the find.
Context and Strategic Importance
The Malampaya gas-to-power facility has long been a cornerstone of the Philippines' energy mix, providing over 20% of Luzon's electricity. The main Malampaya field began commercial production more than two decades ago and had been expected to decline substantially in coming years, prompting concern about supply shortfalls. In 2023, the government extended exploration rights in the Malampaya area for another 15 years.
Territorial and Regional Considerations
The new reservoir lies within the Philippines' Exclusive Economic Zone (EEZ), the area extending 200 nautical miles from the coastline where a state has exclusive rights to explore and exploit marine resources under the 1982 U.N. Convention on the Law of the Sea. The announcement comes amid broader South China Sea tensions: efforts to explore the Reed Bank and other offshore sites have faced resistance from China, which asserts overlapping claims across much of the sea. Other regional claimants include Vietnam, Malaysia, Brunei and Taiwan, and occasional maritime confrontations have complicated exploration in disputed waters.
Safety and Next Steps
Marcos highlighted that the drilling operation was led by Filipino personnel and was completed without accidents or environmental incidents. Authorities emphasized that further tests and another exploratory well will be required to determine recoverable reserves, commercial viability, and a production timeline.
“This discovery strengthens our domestic gas supply for many years to come,” President Marcos said, noting the find’s potential to complement the existing Malampaya field.
Officials and industry observers caution that while the discovery is promising, it is still an early-stage find: proven recoverable volumes, development costs, regulatory approvals and market conditions will shape whether and when the deposit can meaningfully offset future supply gaps.
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