Phl's first strategic petroleum reserve eyed for completion by 2027

The Philippines’ first government-owned strategic petroleum reserve is expected to be completed by the end of 2027, with six storage tanks planned by 2028, the Philippine National Oil Company (PNOC) said Thursday. However, funding for the fuel to fill the facilities has yet to be secured.

The country currently has no government-owned strategic petroleum reserve, leaving it vulnerable to global supply disruptions triggered by geopolitical tensions, including the ongoing conflict involving the United States and Iran.

The Philippines imports nearly 98% of its oil from the Middle East, making domestic fuel prices susceptible to supply disruptions in the region.

PNOC Deputy Manager Antonio Buenviaje told the Senate energy committee that land development for the strategic petroleum reserve has begun, with the initial storage tank expected to be completed by the end of 2027. The tank will have a capacity of one million barrels of oil.

However, Buenviaje clarified that the P8 billion in funding secured for the project covers only the construction of the storage facilities, with no allocation yet for the fuel inventory.

“For the PNOC facility, sir, the initial project is only the facility. We do not have a budget. We only asked for P8 billion for these facilities. We do not have a budget for the fuel, the inventory that will be put in these facilities,” he told senators during deliberations on proposed amendments to the Oil Deregulation Law.

Buenviaje’s remarks came after the Department of Energy (DOE) emphasized the need to establish a government-owned fuel stockpile to help stabilize supplies during emergencies.

Atty. Rino Abad, director of the DOE’s Oil Industry Management Bureau, said the government could strengthen