The Philippines has made its first natural gas discovery in more than ten years, President Ferdinand Marcos Jr announced on Monday. The find, located near the existing Malampaya gas field off Palawan island, could bolster the country’s efforts to diversify its energy mix.

The newly drilled well, named Malampaya East One (MAE-1), is estimated to hold around 98 billion cubic feet of natural gas, enough to generate roughly 14 billion kWh of electricity annually. Initial tests showed a daily flow rate of 60 million cubic feet, suggesting strong production potential comparable to the original Malampaya wells, according to Marcos.

The well lies approximately 5 kilometers east of the Malampaya gas-to-power facility, the Philippines’ only indigenous source of natural gas. The site is operated by Service Contract 38, a local consortium led by Prime Energy in collaboration with UC38, PNOC Exploration Corporation, and Prime Oil and Gas Inc. Exploration continues in surrounding areas within the block.

In addition to natural gas, the discovery also includes condensate, a high-value liquid fuel. Marcos said these resources could play a key role in stabilizing the country’s electricity supply as demand grows.

The Philippines, which relies heavily on coal for power generation, has been increasing its use of gas and renewable energy. In 2025, the country recorded its first decrease in coal-generated electricity in 17 years, driven by rising imports of liquefied natural gas (LNG).

The government extended the Malampaya production contract in 2023, allowing for additional drilling to boost output after declines in the field raised concerns it could be depleted by 2027. The country has also opened up to LNG imports to ensure continued operation of gas-fired power plants.