EXPLAINER: How the new Malampaya gas well will benefit Filipinos

Malacañang on Friday explained the significance of drilling and testing the Camago-3 well, an indigenous energy source in offshore Palawan, as the country faces fuel supply concerns amid the Middle East conflict.

Citing information from the Presidential Communications Office, Sandra Aguinaldo reported on "24 Oras" that the Camago-3 well can produce up to 60 million standard cubic feet of gas each day, enough to power around one million households.

On Thursday, President Ferdinand Marcos Jr. made the announcement regarding the Camago-3 well.

Marcos said the Camago-3 holds an estimated 2.5 times more recoverable gas than the Malampaya East-1 discovery. 

“Together, these two wells are projected to extend the life of the Malampaya gas field by an estimated six years,” he said. 

Marcos added that the latest discovery means a steadier and cheaper power supply for the country. 

“Malampaya gas costs us roughly P4.80 per kilowatt-hour. Imported LNG costs P10.30. More than double,” Marcos said. 

“Every unit of power we generate from Malampaya instead of imported fuel is money saved by households, by small businesses, by every Filipino who pays an electricity bill,” he added.

Following the successful drilling, completion, and flow test in Camago-3, Prime Energy, the gas division of business magnate Enrique Razon's Prime Infrastructure Capital Inc., stated that it is on track to start producing natural gas from the Malampaya Phase 4 (MP4) by late 2026.

"The next major step is the drilling of the Bagong Pag-asa exploration well, located about 30 kilometers north of Malampaya. If gas is confirmed, the well will undergo drill-stem testing to assess its production potential,” Prime Energy said in a statement.

Prime Energy leads the Malampaya Consortium, with joint venture partners UC38 LLC., Prime Oil & Gas Inc., and PNOC Exploration Corp. —Jiselle Anne Casucian/VBL, GMA Integrated News