Mideast firms mull oil stock piling in Philippines

MANILA, Philippines —  Industry players from the Middle East are looking to invest in the Philippines’ planned strategic oil reserve, according to Energy Secretary Sharon Garin.

Garin said the companies could participate in the country’s oil stockpiling initiative by investing in storage facilities or supplying crude oil to build up the reserve.

“It’s really a very positive development. They’re interested. We don’t even have to buy it because they’ll just pay us for stockpiling,” she said yesterday on the sidelines of an energy forum organized by the American Chamber of Commerce of the Philippines.

Garin did not identify the Middle Eastern firms but said they had gone a step further by proposing a clause that would allow the Philippines to tap their stored crude oil in times of global crises.

“So, it’s really a win-win situation. We just need to get the infrastructure started,” the energy chief said.

A strategic petroleum reserve is an emergency stockpile of crude oil and refined petroleum products maintained by the government, private entities or both.

It is released when normal oil supply is disrupted by events such as geopolitical conflicts, natural disasters or global shocks, helping stabilize supply and prices while ensuring fuel availability for the country.

The government is pushing to establish a reserve that would provide the Philippines with an additional 30 days of fuel security, on top of the roughly 30-day supply buffer already maintained by private oil firms.

The project is estimated to cost around P30 billion, with Garin directing the Philippine National Oil Co. to build at least one storage tank before June 2028.

“So that’s more or less the objective within the (President Marcos) term: to get it started because we really need to get this done. We really need to have concrete resources in place so that the next generation can build on it and add more and more,” she said.

Recently, the Japanese government expressed commitment to supporting the development of a national stockpiling system in the Philippines.

As part of this initiative, Japan will carry out feasibility studies and provide technical assistance for the construction of new strategic storage facilities.