Marcos announces new gas supply, extends Malampaya life by 6 years

Metro Manila, Philippines – President Ferdinand Marcos Jr. announced a new natural gas discovery that is expected to extend the life of the Malampaya gas field by up to six years, boosting energy security amid volatile global fuel prices.

In a statement, Marcos said the Camago-3 well has been successfully drilled and tested, producing up to 60 million standard cubic feet of gas per day. The project marks the second major milestone under the $893-million Malampaya Phase 4 development.

“It is significantly larger than our first,” Marcos said, noting that Camago-3 contains an estimated 2.5 times more recoverable gas than the earlier Malampaya East-1 discovery.

Combined output from the two wells is expected to prolong the operational life of Malampaya, the primary source of indigenous natural gas, which supplies a number of power plants in Luzon.

Marcos said the development would translate into more stable and potentially cheaper electricity for consumers.

“Ano ang ibig sabihin nito para sa inyo? It means more power. Steadier power. And cheaper power,” he said.

[Translation: What does this mean for you? It means more power. Steadier power. And cheaper power.]

He noted that electricity generated from Malampaya gas costs around ₱4.80 per kilowatt-hour, compared to about ₱10.30 per kilowatt-hour for imported liquefied natural gas (LNG).

“Every unit of power we generate from Malampaya instead of imported fuel is money saved by households, by small businesses, by every Filipino who pays an electricity bill,” Marcos said.

The president linked the development to ongoing global instability, particularly tensions in the Middle East, which have disrupted energy markets.

“Alam nating lahat kung gaano kahalaga ito ngayon. Ang kaguluhan sa Middle East ay nagdudulot ng matinding pabago-bago sa presyo ng gasolina sa buong mundo,” he said.

[Translation: We all know how important this is now. The conflict in the Middle East is causing extreme volatility in global fuel prices.]

He said the government is accelerating efforts to secure domestic energy sources to reduce exposure to external shocks.

Marcos also highlighted new infrastructure developments tied to the project, including the installation of subsea pipelines — the first since the Malampaya project began operations in 2000.

“Ibig sabihin, may bagong tubo na itatanim sa ilalim ng dagat para maihatid ang gas mula sa pinagkukunan nito patungo sa ating mga tahanan at negosyo,” he said.

[Translation: This means new pipelines will be laid under the sea to deliver gas from its source to our homes and businesses.]

The government is targeting the first delivery of gas from the new well by the fourth quarter of 2026.

Marcos said further exploration is underway, including the Bagong Pag-asa well located about 30 kilometers north of Malampaya.

“This is indigenous energy. It is ours,” he said. “This is our future, and it is how we protect every Filipino from the burden of rising global fuel prices.”