Natural gas resources in the Philippines total 25.7-39.5 trillion cubic feet (Tcf), of which 3.4-5.4 Tcf are discovered recoverable reserves. They are classified into four types, namely: 1. oil gas, 2. coal gas, 3. water-associated gas (includes marsh gas), and 4. inorganic gas. The major deposits are oil-gas types including Camago-Malampaya in NW Palawan offshore area, San Antonio in Cagayan Valley and Libertad in Cebu.

The current Philippine gas industry development initiative is anchored on the Camago- Malampaya deposit which is estimated to support the operation of 3,000 MW gas-tired power plants for over 20 years with its 2.5-3.2 Tcf maximum recoverable reserves.
Commissioning of these plants is programmed by 2002. Gas-fired power plants programmed beyond 2002 require additional gas discoveries or importation of LNG. Conversion of the Bataan Nuclear Power Plant to a 1,500 MW gas-tired plant has been offered on the expectation of more recoverable gas reserves to be delineated shortly. Assurance of gas supply for the Philippines, including those for non-power uses, are, however optimistically provided by the LNG option and the Trans-ASEAN Gas Pipeline Project.

Opportunities for investment are wide open under strong government commitment for a private—sector led natural gas industry development from upstream to downstream. The establishment of a nationwide gas infrastructure is expected to work towards maximizing the gas potential of the country through extensive exploration, coupled with development of local gas markets sparked by a galloping economic growth.