PHL and China discuss possible joint gas project

By Kaela Patricia B. Gabriel

THE Philippines and China discussed the possibility of joint gas development during recent bilateral talks, signaling a potential revival of energy cooperation as Manila confronts tighter fuel supplies.

Initial exchanges on oil and gas exploration took place during the 24^th Foreign Ministry Consultation and the 11^th Bilateral Consultation Mechanism on the South China Sea, the Philippine Department of Foreign Affairs (DFA) said late on Saturday. The discussions were held alongside talks aimed at improving coordination between the two countries’ coast guards.

President Ferdinand R. Marcos, Jr. last week said he is open to restarting talks on joint energy exploration with China as the Philippines grapples with a fuel squeeze linked to the war in the Middle East.

China has also signaled willingness to resume negotiations. Shortly after Mr. Marcos’ remarks, Beijing said it is open to renewing discussions on joint energy development in the South China Sea.

Energy cooperation between the two countries has stalled in recent years. In 2023, the Philippine Supreme Court ruled unconstitutional a tripartite agreement among the Philippines, China and Vietnam to conduct marine seismic surveys in the disputed area, complicating efforts at joint resource exploration.

The latest talks were led by Philippine Foreign Affairs Undersecretary Leo M. Herrera‑Lim and Chinese Vice-Foreign Minister Sun Weidong. The delegations discussed political and security issues as well as potential cooperation in trade, agriculture and the energy sector, the DFA said.

The Philippines also raised recent incidents in contested waters that have affected Filipino personnel and fishermen, while reiterating its position on sovereignty based on the United Nations Convention on the Law of the Sea and the 2016 arbitral ruling that voided China’s expansive claims.

“Both sides continued to make progress on practical measures that are consistent with Philippine law and policy to increase confidence in the maritime domain,” the DFA said.

Beyond energy, the two countries discussed steps to deepen people‑to‑people ties through expanded tourism access, including visa facilitation and the opening of additional direct flight routes.

In January, the Philippines began allowing Chinese nationals to enter visa‑free for up to 14 days for tourism and business purposes, provided entry is through the Ninoy Aquino International Airport or Mactan‑Cebu International Airport.

Any move toward joint energy development would likely face legal and political scrutiny at home, given constitutional limits on foreign participation in resource extraction and heightened tensions in the South China Sea.

CHINESE ADVANTAGE
The Philippines could benefit from China’s technical capacity in offshore drilling if the two sides proceed with a joint oil and gas exploration in disputed areas of the South China Sea, provided Manila secures a formal agreement that safeguards its sovereignty, political analysts said.

While joint exploration could unlock much-needed energy resources for the Philippines, analysts cautioned that China would likely retain an advantage in any partnership due to its economic and technological clout.

“The Philippines does not have the capability to explore and make good use of available natural resources,” Edmund S. Tayao, president of Political Economic Elemental Researchers and Strategists, said in a Facebook Messenger call. “It will really require a partnership with a more capable country like China.”

Mr. Tayao noted that even if the potential exploration sites are within areas claimed by the Philippines, Manila would remain the lesser partner in such a venture. He stressed that the structure of any agreement would be crucial, particularly in defining resource-sharing terms and explicitly protecting Philippine sovereign rights.

“If the agreement includes control, sovereignty or ownership of the area, then we are clearly at a disadvantage,” he said, adding that negotiations should focus strictly on joint development.

Beyond economic considerations, a joint oil and gas project could also help ease diplomatic tensions and support broader confidence-building measures in the region. Amr Solon S. Sison, a Far Eastern University political science instructor, said cooperation on energy development could advance long-stalled talks on a code of conduct in the South China Sea.

“The Philippines does not have an established infrastructure to fully harness the energy sources from deep sea drilling besides natural gas,” Mr. Sison said in a Messenger chat, noting that the country has only one oil refinery and limited capacity for offshore drilling beyond natural gas extraction.

Mr. Tayao said Mr. Marcos’ openness about joint exploration is consistent with the administration’s foreign policy stance of being “a friend to all and an enemy to no one.”

Mr. Sison, however, views the potential revival of talks as a pragmatic response to rising global energy prices amid the war in the Middle East.