A major impetus for changes in the countrys Natural Gas sector has been the Malampaya offshore field. Malampaya is the largest natural gas development project in Philippine history, and one of the largest-ever foreign investments in the country.  Shell Philippines Exploration (SPEX, Operator, with a 45% stake), Texaco (45%), and the PNOC (10%) have come together to form the $4.5 billion Malampaya Deepwater Gas-to-Power Project. 
Malampaya is located in the South China Sea, off the northern island of Palawan, and contains an estimated 2.6 Tcf of natural gas. A 312-mile (504-kilometer) Pipeline links the field to three power plants in Batangas. The pipeline is among the longest deep-water pipelines in the world, with half of its length more than 600 feet deep. With completion of the sub-sea pipeline and conversion of the first of three power stations, (San Rita, operated by British Gas and Philippines 1st Gas Corp.), the Malampaya project was officially inaugurated on October 16, 2001. Natural gas from Malampaya eventually will fuel three power plants, with a combined 2,700-megawatt (MW) capacity, for the next twenty years, displacing 26 million barrels of fuel Oil.  The BG/Philippines 1st Gas Corporation partnership converted a second power plant at San Lorenzo to natural gas in 2003.  The Philippine government currently is considering a sale of half of PNOCs stake to an outside investor, and has reportedly held talks with Korea Gas (Kogas).
A $100 million expansion pipeline from Batangas to Metro Manila ("Bat-Man") has been under consideration.  This pipeline would supply gas to additional power plants as Well as the industrial and commercial sectors. Negotiations on the financial aspects of the project are ongoing.