THE Philippine National Oil Company (PNOC) has funded and started studies to build at least one oil storage tank by end of next year.
‘The Philippine National Oil Corporation reported that they have already started the studies and they have already allocated a budget with objective of having at least one tank ready by the end of 2027. That is one million barrels per tank,’ said PNOC chairman and Energy Secretary Sharon Garin.
PNOC, in partnership with the Maharlika Investment Corp., are developing a strategic petroleum reserve and oil storage facility. Maharlika proposed a consortium with PNOC and the private sector to build oil depots to store strategic reserves. Maharlika would act as a capital provider, PNOC would contribute assets and private operators would manage the facilities.
The investment is initially pegged at P5 billion per storage tank, capable of storing 500,000 to one million barrels of oil.
‘We are moving this forward to provide the country with a government-held emergency fuel buffer that can be called upon when major international supply disruptions threaten our energy security,’ said Garin.
‘Our objective is hopefully to have around 15 tanks, but that will take time because this is a very expensive and long process,’ she added.
Garin pointed out that building comprehensive infrastructure like roads and ports for petroleum reserves decreases the country’s vulnerability to global economic shocks by diversifying and expanding its energy mix.
‘What we need are roads, ports, and all the other facilities that should be in a petroleum reserve.
Every additional source we develop, every reserve we build, and every indigenous
energy resource we bring into our energy mix makes the country less vulnerable to the next global shock,’ added Garin.
The Senate and the House of Representatives are already tackling the proposed bills related to establishing the Philippine Strategic Petroleum Reserve (PSPR) system.