Philippine National Oil Company-Exploration Corporation (PNOC-EC) has discovered a major commercial natural gas supply at its Mangosteen project in Santiago City in Isabela. This natural gas well would complement the production of the Malampaya offshore project in Palawan and allow the government to supply additional cheap and clean energy. The Mangosteen well was spud recently and it comes under the Service Contract 37 programme in the Cagayan basin. PNOC-EC records showed that the Mangosteen field, located 8 km south of Santiago, Isabela, had a recoverable resource potential of 71 billion cubic feet of natural gas reserves that can contribute 60 MW to the Luzon power grid for more than 15 years.