BATANGAS CITY, Philippines — President Ferdinand Marcos Jr. announced that the expanded supply of indigenous natural gas from the newly developed Malampaya wells will help lower electricity costs, reduce foreign energy dependence, and strengthen national energy security.
Speaking at the first gas milestone of the Malampaya Phase 4 (MP4) project in Batangas City, the President emphasized that harnessing local gas resources shields the domestic power sector from international fuel price volatility.
“Maximizing the use of Malampaya gas could contribute to more competitive power rates because we are relying less on imported energy sources that are subject to volatile international energy prices,” he said.
Highlighting the direct impact on everyday consumers, President Marcos underscored the tangible advantages of domestic production:
“Sariling gas. Mas maaasahang kuryente. Mas matatag na enerhiya para sa ating bansa,” he stated.
The Chief Executive noted that with more than half of the country’s energy supply previously sourced from abroad, the Philippines remained exposed to geopolitical tensions and supply shocks.
Pointing out the critical link between industrial growth and energy availability, he added, “As our economy grows, so does our demand for energy. Industrialization and energy grow hand-in-hand; one cannot exist without the other,” and stressed, “We cannot fully rely on other countries to provide these resources all of the time.”
Expanding Local Reserves and Infrastructure
The milestone marks the successful delivery of natural gas from the Malampaya East-1 and Camago-3 wells, resuming offshore drilling operations in the country after nearly a decade. Drilled and tested in early 2026, the wells yielded an estimated 222 billion cubic feet of natural gas reserves and were linked to the existing subsea production network.
Executed by project operator Prime Energy through an investment nearing $1 billion, the development was completed 27 months post-final investment decision—roughly five months ahead of schedule.
The newly tapped reserves are projected to generate approximately 31.46 billion kilowatt-hours of electricity, sufficient to power 13.11 million households for a year, while extending the operational life of the Malampaya field by about six years.
Broader Exploration and Economic Impact
Beyond immediate energy provisioning, President Marcos highlighted public-private synergy as a driver for local technical expertise, job creation, and state revenues. Since commercial operations commenced in 2001 under Service Contract No. 38, the Malampaya project has channeled over $14 billion into government coffers while fueling roughly one-fifth of the Luzon grid’s electricity requirements.
To sustain momentum, the administration has rolled out auxiliary initiatives, including the award of 14 new Petroleum Service Contracts, special allowances for frontier and remote gas exploration, the Philippine Gradiometry and Seismic Survey Project, and the implementation of the Philippine Natural Gas Industry Development Act favoring indigenous gas procurement.
Reflecting on these combined efforts, Marcos concluded:
“Taken together, these measures optimize our resources, encourage responsible investments, and ensure that the benefits of our pursuits serve the national interest.”