Manila: The United Arab Emirates (UAE) and Saudi Arabia are set to construct oil storage facilities in the Philippines, using their own resources. This development promises the Philippines potential priority access to fuel during supply disruptions, as reported by the Department of Energy (DOE).
According to Philippines News Agency, during a Senate Committee on Energy hearing, DOE Oil Industry Management Bureau Director Rino Abad confirmed that both nations have shown interest in building storage hubs in the Philippines without financial input from the Philippine government. Abad stated that Saudi Arabia would cover all construction expenses, a sentiment echoed by Senator Erwin Tulfo, who mentioned a similar proposal from the UAE. The UAE intends for its facility to remain under UAE ownership while ensuring the Philippines has access to petroleum products during emergencies.
Abad emphasized the importance of having an arrangement that prioritizes the Philippines during supply crises. The DOE has already submitted a concept note to Saudi Arabia for a proposed hub targeting a capacity of 50 million barrels. Discussions with Saudi Arabia are ongoing to finalize the project's timeline and documentation, and the UAE will be approached next.
Saudi Arabia and the UAE are longstanding petroleum suppliers to the Philippines, with established export routes bypassing the Strait of Hormuz. In parallel, the Philippine National Oil Company (PNOC) is developing its own government-owned strategic reserve in Bataan, aiming for an initial capacity of one million barrels by 2027, with future expansion plans.
PNOC Deputy Manager Antonio Buenviaje highlighted that the initial reserve would suffice for just over two days of consumption, given the country's daily consumption of approximately 450,000 to 460,000 barrels. Senator Tulfo urged the DOE and PNOC to expedite administrative processes, noting that partnerships with major oil-producing countries could fortify the Philippines' resilience against global petroleum market disruptions.
