Philippines discovers first gas field in a decade

The Philippines has discovered a new natural gas and gas condensate field near the existing Malampaya project off the island of Palawan. The Malampaya East One well contains about 98 billion cubic feet of gas, equivalent to nearly 14 billion kWh of electricity per year. About this reports Reuters.

It is located approximately five kilometers east of the Malampaya gas project, which remains the only domestic source of natural gas in the Philippines.

Philippine President Ferdinand Marcos Jr. highlighted that initial test results show the well was producing 60 million cubic feet per day. This indicates that the well has the potential to produce even more, confirming that it is a high-yielding resource comparable to the original Malampaya wells.

The project is being developed by the Service Contract 38 consortium. The operator is Prime Energy in partnership with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc. In addition to natural gas, the discovery also discovered gas condensate – an additional resource that can support the stabilization of the country's electricity supply.

In 2023, Marcos Jr. signed an agreement to extend the gas production contract on the Malampaya block for 15 years. This allowed the operator to drill new wells to support production, which had been gradually declining.

The country's energy system is largely dependent on coal, but the government is seeking to increase the use of natural gas and renewable sources to meet growing demand for electricity.

According to market, the country could see its first decline in coal-fired electricity generation in 17 years in 2025. This comes amid a surge in gas-fired generation, particularly imported liquefied natural gas (LNG).

For an archipelago with a population of over 110 million people, reliable energy supply is a critical issue for economic development.

• In July 2023, for the first time in a decade discovered a new gas field in Norway at the Carmen field in the North Sea.