Malampaya Phase 4 to drill three wells by 2026

Prime Energy Resources Development B.V. is advancing the Malampaya Phase 4 Project with an investment of USD 893,000,000 to drill three new gas wells and extend the life of the country’s largest indigenous gas field beyond 2026 to help meet Luzon’s growing power demand.

Speaking at the PowerTrends 2025 International Business Forum on Oct. 2, Prime Energy President and CEO Donnabel Kuizon Cruz said the company remains focused on developing local gas resources to advance energy independence while complementing the growth of renewable energy in the country.

“Our task is clear: to make our very own Filipino gas a bridge that unifies the industry and serves as a force for good for Filipinos,” Cruz said.

Cruz emphasized that indigenous gas continues to stabilize power costs and supply while generating significant government revenues, noting that Malampaya has produced USD 13,900,000,000 since operations began in 2001.

Under the Department of Energy’s leadership, Prime Energy and its Service Contract 38 consortium partners — Prime Oil & Gas Inc., UC38 LLC, and PNOC Exploration Corporation — are implementing the USD 893,000,000 Malampaya Phase 4 Project, described as the largest upstream investment in more than a decade.

The project will drill three wells — Camago 3, Malampaya East 1, and Bagong Pag-asa 1 — with new gas expected by 2026 to extend the life of the field that currently supplies up to 40 percent of Luzon’s power demand and about 20 percent of its electricity requirements.

Cruz added that natural gas complements renewables by addressing daily intermittency while emitting about 50 percent less carbon dioxide than coal.

“Through the collective efforts of brave Filipinos, the runway has been set for a new era of exploration.

MP4, the first project of an all-Filipino-led consortium, is the first step,” she said.

Malampaya gas powers multiple plants that anchor Luzon’s baseload supply, and extending field output helps bridge the grid’s transition as renewable capacity scales and new firm generation is added.