First Gas Gushes Out of Southeast Asian Deepwater Project

November 6, 2026 · 6 minutes ago

This nearly $1-billion development has unlocked new deepwater reserves to boost energy security and stabilize power costs.

Prime Energy Resources Development (Prime Energy), a subsidiary of Prime Infrastructure Capital, has brought fresh natural gas reserves online from deepwater Palawan to power the Luzon grid and strengthen national energy independence off the coast of the Philippines.

The Malampaya Phase 4 (MP4) project has achieved its first gas milestone, bringing natural gas from the Malampaya East-1 and Camago-3 wells into the existing Malampaya production system and extending the productive life of the field. Prime Energy describes this achievement as a significant milestone for the Malampaya consortium that reinforces the project’s role in sustaining the Philippines’ indigenous natural gas supply. President Ferdinand R. Marcos Jr., together with Department of Energy (DOE) officials and SC 38 joint venture partners, witnessed the ceremonial first flow of gas at the Malampaya onshore gas plant in Batangas City on November 5.

MP4 was completed in 27 months after the final investment decision, approximately five months ahead of its original schedule, and five months ahead of the industry benchmark, reflecting the strong coordination across the project, particularly given the complexity of deepwater development, which involved multiple contractors and suppliers and required the mobilization of specialized equipment, manufactured components, and technical experts from around the world.

"For 25 years, Malampaya has demonstrated the value of developing our own energy resources. It has powered millions of Filipino households and businesses, supported economic growth, and generated more than $14 billion in government revenues. But Malampaya’s resources are finite. Sustaining production requires continued investment and the technical expertise to develop reserves that are increasingly challenging to access. That is what Malampaya Phase 4 represents."

MP4 marked the Philippines’ first offshore drilling campaign in more than a decade, with an international supply chain spanning 17 countries, including Germany, the United Kingdom, Norway, the Netherlands, the United States, Japan, South Korea, Australia, Singapore, Malaysia, and the Philippines.

With an investment of close to a billion dollars, MP4 involved drilling two deepwater wells and installing subsea infrastructure to connect them to the existing Malampaya production platform. The project added an estimated 222 billion cubic feet (bcf) of recoverable natural gas reserves, capable of generating approximately 31.46 billion kilowatt-hours of electricity, enough to power 13.11 million Filipino households for one year.