The Philippines Department of Energy has outlined plans to establish state-owned reserves of crude oil, oil products and biofuels, which can be tapped on in times of supply disruptions.
The initiative is aimed at decreasing the country’s reliance on imported crude oil and finished oil products.
State-owned Philippine National Oil Company will construct, buy or lease storage facilities for the reserves and seek supply contracts. The reserve will complement the existing minimum inventory requirement for local refineries.
Energy secretary Alfonso Cusi, in a statement, described the “strategic petroleum reserve” as consisting of “large stockpiles of crude oil as well as petroleum products, stored in facilities located around the country, and possibly overseas”.
More than two thirds of Philippine oil imports come from Middle East producers, led by Saudi Arabia.