Libanan eyes Malampaya funds for fuel storage facilities

House Minority Leader Marcelino Libanan said government earnings from the Malampaya Deep Water Gas-to-Power Project could be used to fund new coastal petroleum storage facilities to cushion the country against global supply disruptions.

Libanan said Malampaya royalties — estimated at over P18 billion annually — are intended for energy resource development and may be tapped to support the establishment of strategic fuel reserves.

“These royalties are intended for the government’s energy resource development projects and programs, so the funds can be used to support PNOC’s coastal fuel storage facilities,” he said.

He urged the state-run Philippine National Oil Co. (PNOC) to build emergency fuel reserves in the Visayas and Mindanao, which could serve as buffer stock for key petroleum products such as diesel, gasoline, and jet fuel during crises.

Libanan said the proposed facilities could be modeled after the Subic Bay Freeport Zone complex operated by Philippine Coastal Storage and Pipeline Corp., which spans 160 hectares and has a storage capacity of 6.3 million barrels, or about one billion liters, of fuel.

Citing data from the Budget of Expenditures and Sources of Financing, Libanan noted that the government collected about P200 billion in Malampaya royalties from 2014 to 2024, averaging P18.2 billion annually. The government receives 60 percent of the project’s net proceeds.

“In addition to Malampaya royalties, Malacañang may allow PNOC to retain a larger portion of its annual net income so it can fund the development of coastal fuel storage facilities,” he added.

Under Republic Act No. 7656, or the GOCCs Dividend Law, government-owned and controlled corporations are required to remit at least 50 percent of their annual net earnings to the national treasury. However, the law allows the President, upon the recommendation of the Finance Secretary, to adjust the dividend rate when necessary.

PNOC continues to generate income primarily through its subsidiary, PNOC Exploration Corp., which holds a 10-percent stake in the Malampaya project.