Prime Energy Resources Development B.V. is moving forward with the USD 893-million Malampaya Phase 4 Project, which will drill three new gas wells to extend the life of the country’s largest indigenous gas field and secure additional supply for Luzon’s growing power demand.

Speaking at the PowerTrends 2025 International Business Forum on October 2, Prime Energy President and CEO Donnabel Kuizon Cruz said the company remains focused on developing local gas resources to advance energy independence while complementing the growth of renewable energy (RE) in the country.

“Our task is clear: to make our very own Filipino gas a bridge that unifies the industry and serves as a force for good for Filipinos,” Cruz said.

Cruz emphasized that indigenous gas continues to play a critical role in stabilizing power costs and supply, while serving as one of the government’s major revenue sources. This is seen with generating USD13.9 billion since Malampaya began operations in 2001.

Under the Department of Energy’s leadership, Prime Energy and its Service Contract 38 (SC 38) consortium partners — Prime Oil & Gas Inc., UC38 LLC, and PNOC Exploration Corporation — are implementing the USD 893-million Malampaya Phase 4 Project, described as the largest upstream investment in over a decade.

The project involves the drilling of three new wells, Camago 3, Malampaya East 1, and Bagong Pag-asa 1, which are expected to deliver new gas by 2026, thus extending the life of the Malampaya field that currently supplies up to 40% of Luzon’s power demand and about 20% of its electricity requirements.

Cruz added that natural gas complements renewables by addressing daily intermittency while emitting around 50% less carbon dioxide than coal.

“Through the collective efforts of brave Filipinos, the runway has been set for a new era of exploration. MP4, the first project of an all-Filipino-led consortium, is the first step,” she said.

Do you think expanding indigenous gas exploration can help the Philippines achieve a smoother and more reliable energy transition?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.