Phase 4 expansion seeks to extend field’s life
The government is banking hopes on an ongoing deepwater drilling at the Malampaya gas field to yield fresh reserves and extend the life of the country’s only indigenous gas source beyond 2029.
President Ferdinand Marcos Jr. conducted an aerial inspection of the Phase 4 expansion project on Tuesday.
He expressed optimism the effort — which involves the drilling of two new production wells and one exploration well — stands a “reasonable chance” of finding more gas beneath Palawan seabed.
“We are going to fly by the rig in Malampaya that is now slowly drilling down into the seabed, with a reasonable chance of success of finding further reserves,” Marcos said during remarks in Aklan before the flight.
Operated by Prime Energy, the $893-million Phase 4 development began in late June and is expected to continue through the last quarter of the year.
Officials said if the wells were productive, the project could stretch Malampaya’s output window by at least five more years — from 2029 to 2034.
Malampaya currently fuels five power plants in Batangas, supplying 1.2 to 1.3 gigawatts of electricity — roughly 20 percent of Luzon’s baseload demand.
The gas powers the Sta. Rita, San Lorenzo, San Gabriel, and Avion plants, as well as a separate open-cycle facility.
Phase 4 is seen as a crucial stopgap to ease the country’s dependence on expensive imported liquefied natural gas (LNG), which energy experts warn could expose the Philippines to global fuel price shocks if local supply dries up.
Prime Energy, a subsidiary of Prime Infra led by billionaire Enrique Razon Jr., has committed to push for further exploration in Service Contract 76 in the East Palawan Basin, and is preparing to drill in a new prospect named Bagong Pag-Asa.
Razon has described Malampaya as a “strategic national asset,” citing its role in bridging the country’s energy transition while indigenous renewable sources are still scaling up. He has also stressed the need for long-term Filipino-led fuel hubs to ensure national energy security.
Marcos was joined by newly appointed Energy Secretary Sharon Garin and Transportation Secretary Vivencio Dizon.
After the aerial flyby, President Marcos made a brief stop on El Nido, where he met with Mayor Edna Gacot-Lim and other local officials.
Sangguniang Bayan member JR Alcantara Gabarra, in a social media post, welcomed the visit and said it marked “a good start to a stronger relationship between local and national governments.”
Gabarra said the President committed to sustaining support for local development and programs in Palawan, particularly those aligned with energy and infrastructure priorities.
