Marcos eyes incentives for investments in upstream gas sector

President Ferdinand "Bongbong" Marcos Jr. wants to incentivize investments in the upstream oil and gas industry.

"We will provide investment incentives by clarifying the uncertain policy in upstream gas, particularly in the area close to Malampaya," Marcos said in his first State of the Nation Address (SONA) on Monday.

Upstream refers to the exploration and production in the oil and gas sector. This involves surveying, drilling, and extracting oil and gas resources.

"This requires clarification of the processes and a review of service contract policy," Marcos said.

The Malampaya gas-to-power facility provides at least 20% of the country’s electricity requirements.

It uses indigenous resources of natural gas, the cleanest-burning hydrocarbon, and reduces the need for imported oil.

"In the interim, natural gas will hold the key," Marcos said, as the Philippines moves to lower its carbon footprint "caused by energy production."

"Our advancement to renewables will have a lead time," the President said.  —VBL, GMA News