The Philippine government has begun building its own strategic petroleum stockpile, prompted by supply disruptions and price volatility caused by escalating tensions in the Middle East. Energy Secretary Sharon Garin stated that the conflict between Iran and the United States highlighted the urgent need for stronger energy security in a country heavily reliant on imported oil.
Plan Details and Initial Capacity
Under the plan, the Philippine National Oil Company (PNOC) will establish facilities to store oil reserves exceeding the current inventory held by private companies. The goal is to create an additional buffer for the nation's supply during crises. The initial stockpile is estimated at 500,000 barrels, with a total project cost of approximately P5 billion. This amount includes the construction of storage tanks, pipelines, a port, and other necessary infrastructure.
Collaboration and Timeline
The Department of Energy (DOE) is coordinating with PNOC and the Maharlika Investment Corporation to finalize an agreement within the month. This will be followed by a feasibility study and site evaluation. The government also plans to expand the reserve to augment the current 30- to 60-day inventory held by private companies, adding roughly 30 more days of buffer stock.
This initiative aims to insulate the Philippines from external shocks and ensure a stable fuel supply for consumers and industries, particularly during geopolitical crises that threaten global oil markets.
