- Philippines discovered 98 billion cubic feet of natural gas at Malampaya East-1 field
- The find can supply electricity to over 5.7 million households annually
- Initial tests show well flow at 60 million cubic feet per day
The Philippines has made a “significant natural gas discovery” for the first time in over a decade, President Ferdinand Marcos Jr. said, in a move that may help reduce the nation's reliance on coal for fuel.
The discovered reservoir in Malampaya East-1, near the existing Malampaya gas field, is estimated to contain around 98 billion cubic feet of gas, equivalent to almost 14 billion kilowatt hours of electricity per year, Marcos said in a video message on Monday. That can supply power to more than 5.7 million households in a year, he adds.
“This helps Malampaya's contribution and strengthens our domestic gas supply for many years to come,” Marcos said. Initial testing showed that the well flowed at 60 million cubic feet per day, indicating it has the potential to produce more and confirming it's a rich resource comparable to the original Malampaya wells, he added.
The latest gas find could help the Southeast Asian nation cut its dependence on coal, but it will need to continue importing liquefied natural gas to meet its growing energy needs. Malampaya has supplied around a fifth of the Philippines' energy requirements. Malampaya is facing depletion after more than two decades in operation, prompting the nation to start importing gas in 2023.
In 2024, the Philippines imported nearly half of its natural gas requirements, Marcos said in October. In January last year, Marcos signed a law to establish a downstream natural gas industry and increase the fuel's share in the Philippines' energy mix.
Yet the newly discovered reserve pales in comparison with the massive gas assets in neighboring Indonesia and Malaysia, which are in the trillions of cubic feet. Malaysia's state-owned gas company produces 7 billion cubic feet per day, while Indonesia's oil firm has output at 2.8 billion cubic feet per day.
A Philippine group led by billionaire Enrique Razon last year started drilling for new natural gas reserves near the Malampaya field off Palawan province that's facing the South China Sea.
Marcos said apart from the gas, the discovery also includes condensate, a liquid fuel. “This additional resource can help support the government's efforts for the stabilisation of our power supply,” the president said.
Marcos said the latest discovery represents the first milestone under the fourth phase of drilling in Malampaya which includes two other wells.
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