Filipino billionaire Enrique Razon looks for new gas fields to power Philippines’ future
Manila: Filipino billionaire Enrique 'Ricky' Razon Jr.’s energy firm is pressing beyond the aging Malampaya gas field in a bid to expand the country’s long-term domestic gas supply and reduce reliance on imported fuel.
Prime Energy Resources Development B.V., the Razon-led operator of Malampaya, said it has an “ongoing study” to explore potential new gas blocks outside the current field area, according to Prime Energy President and CEO Donnabel Kuizon Cruz.
Local media reported that the move comes amid efforts to extend Malampaya’s productive life through drilling new wells, including recent discoveries like Malampaya East-1 (MEA1) and Camago-3, which officials say could sustain gas output for years.
“We’re not focused on just one area. And of course, every year, we refresh our work program budget to see where we want to go next,” she told the Inquirer.
Powerfing Luzon grid with gas
Malampaya supplies a significant portion of Luzon’s electricity, but output has declined after more than two decades of operation.
This prompted Manila to consider broader exploration to meet energy demand, particularly as the nation seeks to cut costs and energy import dependence.
Prime Energy has begun mobilising geological and technical teams as part of the exploratory push, though specific sites and timelines have not been disclosed.
Kuizon Cruz said the company updates its work program annually to identify targets beyond Malampaya as part of a strategy to secure future gas supply.
Razon is steering his energy arm — Prime Infrastructure Capital Inc. — to aggressively explore new gas reserves beyond the depleting Malampaya field.
MALAMPAYA: Discovered in 1989 and operational since 2002, Malampaya has powered about 20% of the nation's electricity for over two decades. Due to its age, output is projected to drop below 200 million cubic feet per day by 2027, per Department of Energy (DOE) estimates. A new gas well, called Malampaya East-1 and about 5km east of the existing Malampaya gas field, was discovered extending its life, and potentially generating more revenue for the state coffers.
This vulnerability threatens blackouts and spikes in prices, as the Philippines imports over 90% of its liquefied natural gas (LNG) needs amid rising global demand.
Unlocking potential
Prime is fast-tracking seismic surveys and drilling in the West Linapacan Basin off Palawan, alongside bidding for Service Contract 40 (Recto Bank) in the West Philippine Sea.
These moves aim to unlock an estimated 3-5 trillion cubic feet of gas reserves, potentially mirroring Malampaya's initial 3.3 trillion cubic feet yield, according to DOE data and Prime's investor filings.
Razon's $1.5 billion investment pipeline includes LNG import terminals in Iloilo and Batangas, already under construction, to bridge short-term gaps while domestic finds mature — targeting first gas from new fields by 2030.
Coal reliance
The strategy aligns with President Marcos Jr.'s energy security push under the Philippine Energy Plan 2023-2050, which prioritizes 35% natural gas in the power mix by 2030 to cut coal reliance from 60% today.
Success could slash LNG import bills — currently $4-5 billion annually, per Bangko Sentral ng Pilipinas figures — saving billions and stabilising rates for 110 million Filipinos.
Yet challenges loom: High exploration costs ($500 million+ per well), environmental pushback from groups like Greenpeace Philippines over seismic blasting's marine impact, and regulatory delays in a bureaucracy ranked 95th globally for ease of doing business, as per World Bank 2025 data.
Razon, whose ports-to-infrastructure empire spans ICTSI and Solaire, leverages his extensive local and international deal-making experiences these, positioning Prime as the DOE's top private gas developer.
