A new natural gas discovery at Malampaya East-1 could significantly strengthen the Philippines’ energy security, adding an estimated 98 billion cubic feet (BCF) of indigenous gas and increasing Malampaya’s remaining recoverable volumes by about 30%, according to Prime Energy.

Prime Energy, operator of Service Contract 38, said the discovery marks the first natural gas find in Philippine territory in more than a decade, reinforcing Malampaya’s role as the country’s only producing indigenous gas field.

“This gas discovery is a victory for the Filipino people,” the company said. “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.”

President Ferdinand Marcos Jr. announced the discovery, which Prime Energy said confirms the presence of a previously untapped reservoir at Malampaya East-1, with associated condensate alongside the gas volume.

Prime Energy credited the find to a fully Filipino-led technical team, highlighting growing local capability in upstream energy development. The company operates SC38 together with UC38 LLC, PNOC Exploration Corporation, and Prime Oil and Gas Inc.

The discovery comes as the country seeks to reduce exposure to imported fuel and manage power costs amid rising demand. Malampaya currently supplies around 20% of Luzon’s power requirements, and at its peak accounted for as much as 40% of the island’s electricity needs.

Prime Energy also acknowledged the role of recent policy support in enabling continued exploration.

“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,” the company said.

The Malampaya East-1 discovery forms part of Malampaya Phase 4, which has been certified as a Project of National Significance. The next phase of the drilling campaign includes the completion and testing of Camago-3, followed by drilling of the Bagong Pag-asa exploration well.

Since operations began, the Malampaya project has generated more than USD13.9 billion in revenues for the Philippine government, while helping cushion the power sector from volatile global fuel prices.

Prime Energy said continued exploration of indigenous gas resources remains critical as the Philippines balances the expansion of renewable energy with the need for stable, affordable baseload power.

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