MANILA, Philippines (AP) — Philippine President Ferdinand Marcos Jr. announced Monday the discovery of new natural gas deposits near the disputed South China Sea that could insulate the Philippines from a potential power crisis.
Marcos said the “major discovery” of an existing natural gas field in northwest Palawan province near waters near key waterways could eventually power more than 5.7 million homes or nearly 200,000 schools for a year, and that further testing and another drilling would be conducted in the area “to seek more potential natural gas resources.”
Undersea reservoirs are estimated to contain about 98 billion cubic feet (2.7 billion cubic meters) of natural gas. Marcos said preliminary tests showed 60 million cubic feet (1.6 million cubic meters) of natural gas per day could be extracted from the well, but he did not provide further details, including when commercial production would begin.
“This contributes to Malampaya’s contribution and strengthens our domestic gas supply for many years to come,” Marcos said. “In addition to natural gas, discoveries include condensate, a high-value liquid fuel.”
The new gas deposit, called Malampaya East 1, was discovered by a consortium about 5 kilometers (3.1 miles) east of the main Malampaya gas field, where commercial gas production began more than two decades ago and is expected to decline significantly within a few years.
“We are proud that Filipinos led this drilling and, more importantly, that they completed it without any accidents or environmental incidents,” Marcos said.
The Malampaya natural gas-fired power generation facility provides more than 20% of the electricity in Luzon, the most populous island region in the northern Philippines. In 2023, Marcos extended Malampaya’s exploration contract for 15 years.
Experts predict Malampaya could run out of natural gas within a few years, raising concerns about a potential power crisis in Luzon, home to the bustling capital and major financial and business district.
The offshore natural gas field is located in the Philippines’ exclusive economic zone, a stretch of water extending 200 nautical miles (370 kilometers) from the country’s coastline that gives the Philippines exclusive rights to explore and exploit the resource under the 1982 United Nations Convention on the Law of the Sea.
Philippine efforts to explore for oil and gas in Reed Bank, another offshore area, have been stalled for years due to opposition from Beijing, which claims the area as well as much of the South China Sea. Reed Bank is also located on the edge of the South China Sea west of the Palawan Island Province in the Philippines.
China opposes Vietnam’s oil and gas exploration in the disputed area. Beijing claims sovereignty over nearly all of the South China Sea and has stepped up its presence, including conducting coast guard and naval patrols in disputed waters in recent years.
Malaysia, Brunei and Taiwan are also embroiled in a long-running territorial standoff in the region.
