Manila. Philippine President Ferdinand Marcos Jr. announced the discovery of a new natural gas deposit near an existing gas field in waters facing the disputed South China Sea, which could shield his country from a potential power crisis.

The discovery of the gas reservoir northwest off Palawan province was “significant” and could eventually supply power to more than 5.7 million households annually, Marcos said Monday.

The undersea reservoir is estimated to contain about 98 billion cubic feet (2.7 billion cubic meters) of gas. Initial tests showed 60 million cubic feet (1.6 million cubic meters) of gas could be extracted each day from the well, Marcos said without providing other details, including when commercial production could start.

“This helps Malampaya’s contribution and strengthens our domestic gas supply for many years to come,” Marcos said. “Aside from the natural gas, the discovery also includes condensate, which is a high-value liquid fuel.”

The new gas deposit, called Malampaya East 1, was discovered by a Philippine consortium about 5 kilometers (3.1 miles) east of the main Malampaya gas field, where commercial gas production started more than two decades ago and was projected to considerably decline in a few years.

The Malampaya gas-to-power facility has generated more than 20% of the electricity for Luzon, the most populous northern Philippine island region. In 2023, Marcos extended an exploration contract in Malampaya by 15 years.

Experts have predicted Malampaya could run out of gas in a few years, which has sparked fears of a potential power crisis in Luzon, where the bustling capital and main financial and business district is located.

The offshore gas field lies within the country’s Exclusive Economic Zone of the Philippines, a 200-nautical-mile (370-kilometer) stretch of water from a country’s coastline where it has exclusive rights to explore and harness resources under the 1982 United Nations Convention on the Law of the Sea.

Philippine efforts to explore for oil and gas in another offshore region, the Reed Bank, have been stalled for years because of opposition from Beijing, which claims sovereignty over the area along with most of the South China Sea. The Reed Bank also lies in the fringes of the South China Sea west of the Philippine island province of Palawan.

Vietnam’s oil and gas exploration in the disputed region has been opposed by China. Beijing claims virtually the entire South China Sea and has reinforced its presence, including coast guard and naval patrols in the disputed waterway in recent years.

Malaysia, Brunei, and Taiwan have also been involved in the region's long-simmering territorial standoffs.