Philippine president announces new gas find in waters facing the disputed South China Sea

Philippine President Ferdinand Marcos Jr., waves during his keynote speech at the Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea, Friday, Oct. 31, 2025. (AP Photo/Ng Han Guan, File)

MANILA, Philippines — Philippine President Ferdinand Marcos Jr. announced Monday the discovery of a new natural gas deposit near the disputed South China Sea, which could shield his country from a potential power crisis.

The “significant discovery” northwest off Palawan province, close to an existing gas field in waters adjacent to the critical waterway, could eventually supply power to more than 5.7 million households or nearly 200,000 schools for a year, Marcos said, adding further tests and another drilling in the area would be done “to pursue more potential gas resources.”

The undersea reservoir is estimated to contain about 98 billion cubic feet (2.7 billion cubic metres) of gas. Initial tests showed 60 million cubic feet (1.6 million cubic metres) of gas could be extracted daily from the well, Marcos said, without providing further details, including when commercial production could start.

“This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come,” Marcos said. “Aside from the natural gas, the discovery also includes condensate, which is a high-value liquid fuel.”

The new gas deposit, called Malampaya East 1, was discovered by a consortium about 5 kilometres (3.1 miles) east of the main Malampaya gas field, where commercial gas production started more than two decades ago and was projected to considerably decline in a few years.

“We’re proud that Filipinos led this drilling and, more importantly, they completed it without any accident or environmental incidents,” Marcos said.

The Malampaya gas-to-power facility has generated more than 20% of Luzon’s electricity, the most populous northern Philippine island region. In 2023, Marcos extended an exploration contract in Malampaya by 15 years.

Experts have predicted Malampaya could run out of gas in a few years, sparking fears of a potential power crisis in Luzon, where the bustling capital and main financial and business district is located.

The offshore gas field lies within the country’s Exclusive Economic Zone of the Philippines, a 200-nautical-mile (370-kilometre) stretch of water from a country’s coastline where it has exclusive rights to explore and harness resources under the 1982 United Nations Convention on the Law of the Sea.

Philippine efforts to explore for oil and gas in another offshore region, the Reed Bank, have been stalled for years because of opposition from Beijing, which claims sovereignty over the area along with most of the South China Sea. The Reed Bank also lies in the fringes of the South China Sea west of the Philippine island province of Palawan.

China has opposed Vietnam’s oil and gas exploration in the disputed region. Beijing claims virtually the entire South China Sea and has reinforced its presence, including coast guard and naval patrols in the disputed waterway in recent years.

Malaysia, Brunei and Taiwan have also been involved in the region’s long-simmering territorial standoffs.

The Associated Press