The Philippines has made its first gas discovery in more than a decade in the contested South China Sea, delivering a much‑needed boost to the country’s push for greater energy independence.
During his announcement of the find on Monday, Philippine President Ferdinand Marcos Jr. called it “significant,” and initial estimates indicate the deposit contains 98 billion cubic feet of gas—enough to power 5.7 million Philippine households.
Why It Matters
The discovery could extend the life of Malampaya—the Philippines’ only indigenous gas source and supplier of 20 percent of the main island of Luzon’s energy needs, down from 40 percent at its peak. Experts have warned the field was set to run dry within a few years.
The South China Sea holds an estimated 40.3 trillion cubic feet of natural gas in proven and probable reserves. It is also contested by multiple nations, including China. Beijing has increasingly deployed maritime forces to back its sovereignty claims over most of the energy-rich waterway, leading to tensions with the Philippines and several other neighbors.
Newsweek reached out to the Philippine Department of Energy by email with a request for comment outside of office hours.
What To Know
The untapped reservoir, known as Malampaya East‑1, sits a few miles east of the existing Malampaya gas field and approximately 50 miles northwest of Palawan province, within the Philippine exclusive economic zone.
Preliminary testing shows it could flow at up to 60 million cubic feet per day, Marcos said. For comparison, Malampaya’s already developed wells produce a combined 429 million cubic feet per day under standard conditions.
Prime Energy Resources Development, a subsidiary of Prime Infrastructure Capital, said the discovery was made by an all‑Philippine consortium, “reflecting the country’s growing capability in upstream energy development.” The consortium consists of Prime Energy, UC38 LLC, PNOC Exploration Corporation and Prime Oil and Gas Inc.
The Palawan shelf is one of 13 natural gas basins in the region identified by the U.S. Energy Information Administration. The Philippines is believed to have the smallest proven and probable reserves among South China Sea claimant states, with about 400 billion cubic feet.
Vietnam’s are estimated at around 2.3 trillion cubic feet, China 5.7 trillion, Brunei 1.9 trillion, Indonesia 1.1 trillion and Malaysia about 28.9 trillion.
What People Are Saying
Philippine President Ferdinand Marcos Jr. said, when announcing the discovery: “This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come.”
Prime Energy wrote: “This gas discovery is a victory for the Filipino people. When we assumed operatorship, we committed to the President and the nation to breathe new life into Malampaya and revitalize the indigenous natural gas sector. Today, we are delivering on that commitment.
“We thank President Marcos for his leadership, particularly for approving the extension of SC38 and for the enactment of the Philippine Natural Gas Industry Development Act, which provides the stability and confidence needed to pursue continued exploration of additional gas resources.”
SC38 is the formal name of the Malampaya service contract, first awarded in 1990.
What Happens Next
The Philippines is seeking to further strengthen its energy reserves by exploring additional potential deposits. The Department of Energy said it is monitoring drilling at two more sites and expects initial results by the end of the first quarter.
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