Philippines discovers gas and condensate at Malampaya East One, boosting energy security, supporting coal reduction, and extending domestic natural gas production.
The Philippines has recorded its first natural gas discovery in over ten years, marking a significant milestone for the country’s energy sector and long-term power security. President Ferdinand Marcos Jr announced that gas and condensate resources have been successfully identified at a new offshore well located near the long-producing Malampaya gas field, off the coast of Palawan island. This discovery is being viewed as a critical development at a time when the country is actively seeking to diversify its energy mix and reduce heavy dependence on coal-fired electricity generation.
The newly drilled well, named Malampaya East One (MAE-1), lies approximately five kilometers east of the existing Malampaya gas-to-power facilities. According to the President, preliminary assessments indicate that the well contains an estimated 98 billion cubic feet of gas in place. This volume is equivalent to nearly 14 billion kilowatt-hours of electricity over a one-year period, underscoring the field’s potential contribution to the national power supply. Initial flow tests further demonstrated strong performance, with the well producing around 60 million cubic feet of gas per day. These early results suggest that MAE-1 could achieve even higher output levels, placing it on par with the original Malampaya wells in terms of productivity.
Beyond natural gas, the discovery also includes condensate, a valuable liquid hydrocarbon that can be processed into high-value fuels and petrochemical feedstocks. The presence of condensate enhances the commercial attractiveness of the find and provides an additional revenue stream. President Marcos emphasized that these resources could play an important role in supporting the government’s efforts to stabilize electricity supply, especially as demand continues to grow alongside population and economic expansion.
The Malampaya East One well forms part of Service Contract 38, which is operated by a consortium led by Prime Energy, in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc. In addition to MAE-1, exploration activities are ongoing in nearby prospects within the same contract area, raising the possibility of further discoveries that could extend the life of the Malampaya gas project.
The Philippines, home to roughly 110 million people, currently operates Southeast Asia’s most coal-dependent power grid. However, the government has been accelerating efforts to expand gas and renewable energy capacity to ensure cleaner, more reliable electricity. Market and government data indicate that the country was on course in 2025 to register its first decline in coal-fired power generation in 17 years, driven largely by increased use of liquefied natural gas for power generation.
Recognizing the strategic importance of Malampaya, President Marcos in 2023 approved a 15-year extension of the production contract for the gas block. The extension allows the operator to drill additional wells and implement new development plans aimed at countering declining output from existing reservoirs. The latest discovery at MAE-1 reinforces the rationale behind that decision, signaling that the Malampaya area still holds substantial untapped potential.
Overall, the new find represents a major boost for the Philippines’ energy transition agenda, strengthening domestic gas supply while supporting the gradual shift away from coal and toward a more balanced, resilient power system.
