The Department of Energy Philippines reported the discovery of an estimated 98 billion cubic feet of gas in place, equivalent to about 142 Gigawatt hours of electricity at Malampaya East 1 (MAE-1). The MAE-1 discovery provides additional reserve capacity for power plants that depend on Malampaya. As a domestic energy source, it helps stabilize prices by reducing exposure to volatility driven by international political conditions and strengthens the country’s energy self-reliance.
President Ferdinand Marcos Jr. also heralded the discovery, which is the first in the last decade. MAE-1 is one of three wells that are part of the drilling campaign under Service Contract No. 38. It is operated by Prime Energy Resources Development B.V., and its partners UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc.
What is the Current Scenario in the PH Natural Gas Industry?
Contributor to Power Sector
Natural gas accounted for 4.4% of the country’s primary energy mix in 2024. In the power sector specifically, natural gas contributed to an estimated:
- 14.9% of total installed capacity (4,612 MW)
- 15.2% of total dependable capacity (4,124 MW)
- 14.2% of power generation (18,047 GWh)
In the Philippine Energy Plan 2023-2050, Natural Gas is targeted to contribute:
- 18.5% of 170.35 TWh in 2030
- 24.2% of 286.31 TWh in 2040
- 35% of the 453.81 TWh in 2050
Source of Government Revenues
- The DOE estimated that between July 2022 to June 2025, 10 Petroleum Service Contracts (Gas) which produced 233.5 billion cubic feet contributed Php47 billion in natural wealth.
- DOE Revenues from the Malampaya Gas Fund have been on a decline due to the depletion of the gas field.
Development of the Downstream Industry
Republic Act 12120 (Development of the Downstream Natural Gas Industry) signed in January 2025 established a framework for the development of the country’s natural gas industry. The law aims to position the Philippines as an LNG trading hub by providing incentives such as VAT exemptions.
The Philippines currently has two operational LNG import terminals located in Batangas:
- Linseed Field Power Corporation LNG Terminal (formerly AG&P/Philippines LNG)
- First Gen Corporation’s Floating Storage Regasification Unit (FSRU)
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