PRESIDENT Ferdinand Marcos Jr. led the first delivery of natural gas from Malampaya’s new offshore wells in Batangas City on Thursday.
Speaking at the ceremonial first flow of gas from Malampaya’s Phase 4 Project (MP4), Marcos said the new wells would help move the Philippines closer to energy independence.
“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.
Marcos assured Filipinos that locally sourced energy would ensure stability amid global tensions, since most of the country’s energy sources are imported.
“What does this mean for every Filipino family? Our own gas, more reliable electricity, a more stable energy supply for our country,” he said in Filipino, stressing the urgent necessity of developing domestic resources to guard against geopolitical tensions and supply disruptions.
“As our economy grows, so does our demand for energy. Industrialization and energy grow hand in hand; one cannot exist without the other. We cannot fully rely on other countries to provide these resources all of the time,” Marcos added.
The successful drilling and testing of the Malampaya East-1 and Camago-3 wells earlier in the year uncovered an estimated 222 billion cubic feet of natural gas reserves.
By June, both wells were integrated into the existing Malampaya subsea production system, channeling indigenous gas from offshore Palawan through transmission infrastructure directly to gas-fired power plants serving the Luzon grid.
The chief executive noted that the Malampaya project forms part of a broader administrative drive to strengthen national energy security. Under the current administration, 14 new petroleum service contracts have been awarded for oil, natural gas and native hydrogen exploration.
The achievement marks a significant milestone for the Malampaya consortium and reinforces the project’s role in sustaining the Philippines’ indigenous natural gas supply.
“From offshore Palawan, this indigenous natural gas will flow through the Malampaya gas transmission infrastructure to Batangas, and ultimately to the gas-fired power plants serving the Luzon grid,” the president said.
He cited the importance of maximizing indigenous natural gas to help manage electricity costs, noting that greater 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.”
Prime Infra Chairman Enrique Razon Jr. highlighted Malampaya’s enduring contribution to national development and the importance of continued investment in its resources.
“For 25 years, Malampaya has demonstrated the value of developing our own energy resources. It has powered millions of Filipino households and businesses, supported economic growth and generated more than $14 billion in government revenues. But Malampaya’s resources are finite. Sustaining production requires continued investment and the technical expertise to develop reserves that are increasingly challenging to access. That is what Malampaya Phase 4 (MP4) represents,” Razon said.
With an investment of close to a billion dollars, MP4 involved drilling two deepwater wells and installing subsea infrastructure to connect them to the existing Malampaya production platform. The project added an estimated 222 billion cubic feet of recoverable natural gas reserves, capable of generating approximately 31.46 billion kilowatt-hours of electricity — enough to power 13.11 million Filipino households for one year.
MP4 was completed in 27 months after the final investment decision, five months ahead of its original schedule and five months ahead of the industry benchmark. Additionally, the Department of Energy has introduced special allowances for service contractors targeting frontier areas and gas development, alongside the implementation of the Philippine Gradiometry and Seismic Survey Project.
Marcos urged investors to build on the success of this Malampaya Phase 4 Project.
“Together, let us shape a Bagong Pilipinas with the foresight to explore, the resolve to develop and the wisdom to manage our resources responsibly for the benefit of generations of Filipinos to come,” he said.
