New petroleum and hydrogen contracts target long-term stability, though immediate relief from high pump prices remains a few “exploration years” away.
Efforts to reduce the Philippines’ reliance on imported fuel are picking up pace, with new energy projects in the Visayas seen to support more stable prices in the long run.
Two new petroleum explorations will restart operations at the Alegria oil and gas field in Cebu after three years of dormancy and pursue the development of natural hydrogen resources in Leyte, aiming to reduce national dependence on imported fuel.
The Alegria field’s gas reserves, estimated at 3.35 million barrels of recoverable oil, can power multiple provinces. Meanwhile, the Leyte project will explore natural hydrogen as a potential commercial energy source, diversifying the country’s energy mix beyond fossil fuels.
But despite the new contracts, the relief they can bring to today’s high pump prices remains years away. Exploration, development, and production will take time before actual energy supply is realized, and consumers are likely to continue feeling the impact of elevated fuel prices in the near term.
The two new projects mark the 11th and 12th petroleum service contracts awarded since 2023, part of efforts to expand domestic energy development and reduce oil import dependence.
The Visayas is becoming the country’s new energy frontier. From the revival of Cebu’s Alegria oil field to pioneering hydrogen exploration in Leyte, find out how the 11th and 12th service contracts aim to shield Filipinos from global fuel shocks.
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