Malampaya milestone: Gas flows from Phase 4 wells
President Marcos on Thursday led the ceremonial activation of the first gas flow from new Malampaya wells that are seen to help cushion the country from fluctuating global oil prices, especially amid the unresolved Middle East crisis.
The Malampaya Phase 4 project at the Malampaya Onshore Gas Plant in Tabangao Ambulong, Batangas City, would help strengthen energy security and make the Philippines less reliant on imported energy sources, Mr. Marcos said.
“We cannot fully rely on other countries to provide these resources all of the time. Last year, more than half of our energy supply came from abroad. Thus, our energy sector is very susceptible to geopolitical tensions, supply disruptions, and price fluctuations,” he said in his speech.
The project adds an estimated 222 billion cubic feet of natural gas reserves to the country’s indigenous supply following the successful drilling and testing of the Malampaya East-1 and Camago-3 wells in the first quarter of 2026.
The President said maximizing the use of Malampaya gas could contribute to more competitive electricity rates by reducing dependence on imported energy sources whose prices are affected by fluctuations in the international market.
“What does this mean for every Filipino family? Our own gas, more reliable electricity, and more stable energy for our country,” he said.
The country’s growing economy and industrialization would drive higher energy demand, he said, thus making the development of local energy resources important.
“As our economy grows, so does our demand for energy. Industrialization and energy grow hand in hand. One cannot exist without the other.”
Power generation
The Malampaya East-1 and Camago-3 wells were connected to the existing Malampaya subsea production system in June, allowing natural gas from offshore Palawan to flow through the Malampaya gas transmission infrastructure to Batangas and eventually supply gas-fired power plants serving the Luzon grid.
In a press statement also on Thursday, Prime Energy said the additional reserves could generate approximately 31.46 billion kilowatt-hours of electricity, enough to power 13.11 million Filipino households for one year.
The company also said the project involved an investment of close to $1 billion and was completed about five months ahead of its original schedule.
New exploration areas
According to the President, administration had awarded 14 new petroleum service contracts covering oil, natural gas and native hydrogen exploration.
The Department of Energy has also granted special allowances to service contractors involved in new exploration areas and gas development in remote locations.
The government is likewise implementing the Philippine Gradiometry and Seismic Survey Project to identify potential exploration sites.
Mr. Marcos also cited the Philippine Natural Gas Industry Development Act, which prioritizes the procurement and use of indigenous natural gas over imported natural gas by gas-fired power plants.—WITH A REPORT FROM KATHERINE CIELO GUIMERA
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