By Micah Jonah
January 22, 2026
The Philippines has announced its first natural gas discovery in more than ten years, marking a significant boost for the country’s energy security as it works towards reducing heavy dependence on coal and costly fuel imports.
President Ferdinand Marcos Jr disclosed that gas and condensate were found at a new well located near the existing Malampaya gas field off the coast of Palawan. The well, known as Malampaya East One, is estimated to contain about 98 billion cubic feet of natural gas, an amount capable of generating nearly 14 billion kilowatt hours of electricity in a year.
According to the President, initial testing showed production flow of about 60 million cubic feet of gas per day, suggesting strong output potential comparable to the original Malampaya wells that have supplied the country with domestic gas for years.
The discovery site is located about five kilometres from the main Malampaya gas to power project, which remains the Philippines’ only indigenous source of natural gas. Exploration is also ongoing in nearby areas within the same contract block.
The project is operated by the Service Contract 38 consortium led by Prime Energy, working alongside UC38, the state owned PNOC Exploration Corporation and Prime Oil and Gas Incorporated.
Energy analysts say the find is timely for a nation of over 110 million people that operates one of Southeast Asia’s most coal dependent power systems. Government and market data indicate that 2025 may mark the first decline in coal powered electricity generation in 17 years, largely due to increased use of liquefied natural gas for power production.
In addition to natural gas, the well also contains condensate, a high value liquid fuel that can be used for power generation and industrial processes. Authorities say the added resources could help stabilize electricity supply and reduce exposure to volatile global fuel prices.
In 2023, the Philippine government extended the Malampaya production contract by 15 years to allow further drilling and boost output, after earlier projections suggested the field could run dry by 2027. Since then, the country has also invested in liquefied natural gas import terminals to support gas fired power plants.
For developing economies like Nigeria, energy experts say the Philippine discovery highlights the importance of sustained exploration and investment in domestic gas resources as part of long term power sector reforms. Nigeria, which holds one of the world’s largest gas reserves, continues to face power supply challenges despite its vast energy potential.
The Philippine breakthrough reinforces the case for African countries to prioritize gas development alongside renewable energy, using domestic resources to drive industrial growth, reduce energy costs and strengthen economic resilience.
