Marcos: Philippines to continue negotiations with China about Malampaya gas fields

WASHINGTON —  President Ferdinand "Bongbong" Marcos Jr. said Thursday (Washington time) that the Philippines would continue to talk to China about the Malampaya natural gas fields.

"The only way to resolve the issues that are outstanding is to once again keep talking and to come to a consensus to come to an agreement and to continue to negotiate," Marcos said during a forum organized by the Center for Strategic and International Studies (CSIS)

"It is not an easy process but the Malampaya fields, natural gas fields that lie in our, within our baselines and within our exclusive economic zone and that again is being questioned in certain cases, in certain areas by China and we continue to negotiate with them,” he added.

The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW) to provide 30 percent of the power generation requirements of Luzon.

Marcos said China has been claiming particular areas where the Malampaya fields are located but are already recognized by the United Nations Convention on the Law of the Sea (UNCLOS) as part of the Philippines' exclusive economic zone.

"The nine dash line covers just about the entire West Philippine Sea. We, on the other hand, have established our baselines which have been recognized and accredited by UNCLOS and therefore there is that conflict and so what happens now especially when it comes to exploration in --- for energy --- for our energy needs are which law will apply because we say this is part of Philippine territory and therefore Philippine law should apply,” Marcos said.

Marcos, however, said both parties are “slowly inching towards a resolution” regarding their claims on the Malampaya fields.

“It may have to come down to a compromise that will just limit that application, the application of laws maybe to the vessels that are involved in this exploration and exploitation of whatever natural gas fields we can access,” he said.

Earlier reports said the Department of Energy has been looking for investors to develop gas fields near the Malampaya gas-to-power facility, as service contracts are set to end in the next two years.

Energy Secretary Raphael Lotilla said there is a need for more investors to develop nearby fields to address the decline in supply in the existing field. — RSJ, GMA Integrated News