The government and a consortium led by billionaire Enrique K. Razon Jr. are moving to fast-track the development of the newly discovered natural gas reservoir, a find that officials say will significantly bolster the nation’s energy security.

The Department of Energy said Monday, Jan. 19, that it will begin technical evaluations and development planning with the SC 38 Consortium after drilling at the Malampaya East-1 well yielded a substantial gas find.

Initial data from the Malampaya Phase 4 drilling campaign indicated the well contains an estimated 98 billion cubic feet of gas, equivalent to roughly one-third of the Malampaya field’s remaining producible reserves.

The discovery is projected to generate approximately 13.9 billion kilowatt-hours of electricity, enough to power 5.8 million households.

Energy Secretary Sharon Garin said the find is a “critical bridge” in the national energy mix, providing a dependable power source while the country scales up its renewable energy capacity and grid infrastructure.

“Natural gas is a critical bridge in our energy mix, supporting power reliability while we scale renewables, energy storage, and grid upgrades,” Garin said.

She added that the government intends to pursue the opportunity with a focus on maximizing value for the public and upholding environmental standards.

“We will pursue this opportunity with discipline: maximizing value for Filipinos, upholding environmental stewardship, and ensuring that every milestone strengthens our national interest,” she added.

Prime Energy Resources Development B.V., the operator of the consortium, said the next stage of operations will involve the completion and testing of the Camago-3 well and the drilling of the Bagong Pag-asa exploration site.

The consortium includes Prime Energy, UC38, Philippine National Oil Company Exploration Corp., and Prime Oil and Gas Inc. Prime Energy stated that the discovery fulfills a commitment to revitalize the indigenous natural gas sector, which has seen its reserves dwindle in recent years.

The Malampaya project is designated as a Project of National Significance and has historically contributed more than ₱700 billion in revenues to the government.

By utilizing domestic gas, the project reduces the economy's exposure to volatile international fuel prices.

Senator Win Gatchalian, vice chairman of the Senate Committee on Energy, said the development is a vital step toward shielding local industries from expensive energy imports.

Gatchalian noted that securing domestic fuel sources is essential for the growth of micro, small, and medium-sized enterprises, which are particularly sensitive to electricity price fluctuations.

The expansion of the Malampaya field comes as the Philippines seeks to avoid a looming energy crunch as older power plants retire and demand continues to rise.