Philippines President Ferdinand Marcos Jr. announced on Monday that the country has discovered a new natural gas deposit near the disputed South China Sea, off Palawan, in a development he said could help protect electricity supply in Luzon.
The announcement followed the identification of what Marcos called a “significant discovery” northwest off Palawan, in waters near the existing Malampaya gas field. Marcos said the find could eventually supply power to more than 5.7 million households or nearly 200,000 schools for a year, though he did not give additional specifics on timing for commercial output.
Marcos said the undersea reservoir, estimated to contain about 98 billion cubic feet (2.7 billion cubic meters) of gas, was tested and that initial results indicated about 60 million cubic feet (1.6 million cubic meters) of gas could be extracted daily from the well. He said further tests and another drilling would be pursued “to pursue more potential gas resources.”
Marcos also said the discovery includes condensate, describing it as a high-value liquid fuel, and argued that it would support Malampaya’s contribution to the power system. He said, “This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come.” He added, “Aside from the natural gas, the discovery also includes condensate, which is a high-value liquid fuel.”
The new deposit was identified as Malampaya East 1. Marcos said it was discovered by a consortium about 5 kilometers (3.1 miles) east of the main Malampaya gas field, where commercial production began more than two decades ago and is expected to decline in the coming years.
In comments on the project’s execution, Marcos said, “We’re proud that Filipinos led this drilling and, more importantly, they completed it without any accident or environmental incidents.” The AP report said the president did not provide additional details, including when commercial production could start.
Officials and industry experts have previously warned that Malampaya could run low in the next few years, raising fears of a potential power crisis in Luzon. Marcos said the Malampaya gas-to-power facility has generated more than 20% of Luzon’s electricity, and in 2023 he extended an exploration contract in Malampaya by 15 years.
The offshore field is described as lying within the Philippines’ Exclusive Economic Zone, a 200-nautical-mile (370-kilometer) stretch of water from the country’s coastline where it has exclusive rights to explore and harness resources under the 1982 United Nations Convention on the Law of the Sea. The Philippines has also faced setbacks in other offshore areas, including the Reed Bank, where exploration efforts have been stalled for years amid opposition from Beijing.
The report said Beijing claims sovereignty over most of the South China Sea and has reinforced its presence, including coast guard and naval patrols in recent years. It also said China has opposed Vietnam’s oil and gas exploration in the disputed region, while Malaysia, Brunei and Taiwan have also been involved in the long-running territorial standoffs.