PHL discovers new natural gas source

THE PHILIPPINES has made its first major natural gas discovery in more than a decade, a development that could strengthen domestic energy supply and support rising power demand, President Ferdinand R. Marcos, Jr. said on Monday.

- By Chloe Mari A. Hufana and Sheldeen Joy Talavera Reporters

The reservoir, called Malam-paya East-1, lies about 5 kilometers east of the existing Malampaya gas field off Palawan province.

"This additional resource can help support the government's efforts for the stabilization of our power supply," Mr. Marcos said in a video posted on his Facebook page.

In a statement on Monday, Razon-led Prime Energy Resources Development B.V., the operator of the Malampaya deep water gas-to-power project, said that the newly discovered reservoir is estimated to hold an estimated 98 cubic feet of gas in place.

The discovery is equivalent to roughly 14 billion kilowatt-hours of electricity a year, enough to supply about 5.7 million households, 9,500 buildings or about 200,000 schools annually.

Initial tests showed the well flowing at about 60 million cubic feet of gas per day, a level Mr. Marcos said is comparable to the original Malampaya wells and indicates strong productivity.

The find also includes condensate, a high-value liquid fuel that could further support efforts to stabilize the electricity supply, Mr. Marcos said.

The Philippines relies on imported gas and coal to fuel its power plants and industrial base, leaving the economy exposed to volatile global prices and supply disruptions.

The discovery of new reserves at Malampaya East-1 offers a rare reprieve, potentially reshaping the country's energy outlook. It is expected to extend Malampaya's role in the nation's energy mix and reinforce domestic gas supply in the coming years. It is also expected to help the Philippines reduce its dependence on coal.

Mr. Marcos said the drilling was led by Filipino engineers and completed without accidents or environmental incidents, underscoring what he described as responsible resource development.