Philippines discovers first natural gas in over a decade

The Philippine President Ferdinand Marcos Jr announced on Monday that gas and condensate were found in a well near the existing 'Malampaya' gas field, off the island Palawan. This was the first natural gas discovery by the Philippines in over a decade.

Marcos stated that the well, known as 'Malampaya East One or MAE-1', contains about 98 billion cubic foot of gas. This is equivalent to nearly 14 billion kWh in one year.

Initial test results showed that the well was flowing at 60 million cubic foot per day. The well is capable of producing even more. This confirms that it's a resource with high productivity, comparable to the Malampaya original wells," Marcos wrote in a Facebook post.

The project is operated by the Service?Contract 38 consortium, a local venture?led by Prime Energy in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc. The project is run by the Service - Contract 38 consortium. This local venture is led by Prime Energy, in partnership with UC38 and PNOC Exploration Corp., and Prime Oil and Gas Inc.

It is a 110-million-strong country with Southeast Asia's largest coal-dependent grid. The Philippines wants to increase its use of renewable energy and gas to meet the rising demand. According to government and market data, the Philippines is on track to record its first decline in coal powered electricity production in 17 years in 2025.

Liquefied Natural Gas-fired Power Generation on the Rise

The discovery also includes liquid fuels, such as condensate. These resources will help the government in its efforts to stabilize our electricity supply," Marcos said.

Marcos signed a contract in 2023 that extended the production contract for the Malampaya block of natural gas by 15 years. This agreement also allowed the operator to drill additional wells, as it sought to increase the declining output.

Experts had predicted that the field would run out of gas by 2027. The Southeast Asian nation has opened its borders to imports of liquefied gas, ensuring the continued operation of gas-fired electricity plants. (Reporting and editing by Martin Petty; Karen Lema)

(source: Reuters)