Philippine President Ferdinand Marcos Jr. has unveiled a major new natural gas discovery in waters facing the contested South China Sea, a development hailed as crucial for the nation's future energy security.
A Significant Boost to Domestic Energy Supply
Speaking on Monday, 19th January 2026, President Marcos confirmed the find, named Malampaya East 1. The reservoir is located approximately 5 kilometres east of the existing Malampaya gas field, northwest of Palawan province. Initial estimates suggest the deposit holds around 98 billion cubic feet of natural gas, with tests indicating a potential daily extraction rate of 60 million cubic feet.
Marcos described the discovery as "significant," stating it could eventually supply power to more than 5.7 million households annually. "This helps Malampaya's contribution and strengthens our domestic gas supply for many years to come," he said. The find also includes condensate, a valuable liquid fuel.
Staving Off a Looming Power Crisis
The timing of the discovery is critical. The main Malampaya field, which started production over two decades ago and supplies more than 20% of Luzon's electricity, was projected to face a considerable decline in output within a few years. Luzon is the country's most populous island region and home to the capital Manila.
Experts had warned that depleting reserves at Malampaya could trigger a severe power crisis. In 2023, Marcos moved to extend the exploration contract for the area by 15 years, and this new discovery directly addresses those long-term energy security fears.
Discovery Amid Regional Tensions
The new gas deposit lies within the Philippines' Exclusive Economic Zone (EEZ), a 200-nautical-mile zone where it holds sovereign rights to resources under international law. However, the region remains a geopolitical flashpoint.
Manila's efforts to explore for resources in another area, the Reed Bank, have been stalled for years due to opposition from Beijing. China claims sovereignty over most of the South China Sea, including areas within the EEZs of several nations. Similar disputes have affected oil and gas exploration by Vietnam in the region.
The announcement underscores the Philippines' push to develop its indigenous resources while navigating complex territorial standoffs involving China, Vietnam, Malaysia, Brunei, and Taiwan.
President Marcos did not provide a timeline for when commercial production from the Malampaya East 1 field might begin. However, the discovery marks a pivotal step in securing the nation's energy independence and economic stability for the coming decades.
