Philippines Eyes Malampaya Gas for Energy Security Amid Rising LNG Prices

As imported liquefied natural gas (LNG)—a fuel primarily composed of methane—hits nearly $16 per million British thermal units (MMBTu), Senator Pia Cayetano, chair of the Senate Committee on Energy, calls for the Philippines to focus on its indigenous Malampaya gas, costing around $12.8 per MMBTu. Senate Bill 2793 encourages the development of domestic energy resources to improve energy security by lowering dependency on imports. With new wells expected to deliver gas by 2026, the Razon-led Malampaya consortium is investing $180 million to extend the field’s production cycle.

Currently undergoing expansion is the Malampaya gas facility, which provides roughly 20% of Luzon’s electricity demand. The Razon-led consortium, which includes Prime Energy Resources and other partners, is investing $180 million to extend Malampaya’s operational life. Project Sinagtala, the expansion, will add new wells expected to boost production by 2026, underscoring Malampaya’s crucial role in maintaining a stable energy supply.

Cayetano recently visited Malampaya to emphasize the importance of indigenous gas for achieving reliable, 24/7 power access. Prime Infra President Guillaume Lucci welcomed her support, stressing Malampaya’s strategic importance and alignment with government energy goals. He also highlighted the role of gas as a transitional fuel as the Philippines moves toward renewable energy. The consortium’s investment in Malampaya showcases a commitment to bolstering the country’s energy security while maximizing natural resources. Beyond LNG and indigenous gas, the Philippines is also exploring other energy sources, including nuclear power, to diversify its energy mix and enhance sustainability, making the country future-proof in relation to renewable energy.