PH needs P30B to build fuel reserve facilities

MANILA, Philippines – The government needs about P30 billion to build national fuel reserve facilities citing vulnerabilities exposed by the oil crisis, according to the energy chief said.

On Thursday, Department of Energy (DOE) Secretary Sharon Garin said that around P5 billion is required to develop one tank that could carry one million barrels, a capacity that could last for five days.

READ: Japan backs PH bid to strengthen fuel reserve system

The agency, she noted, is targeting to have an infrastructure that could store supply enough for 30 days.

Currently, industry players follow approximately 15 days of mandatory stock requirements. Actual inventories sometimes extend to 30 days or more.

“Our idea is to have a total of 60 days of reserve here in the country and hopefully, we can add some more eventually,” the official said on the sidelines of an event Wednesday night.

According to Garin, the DOE is collaborating with state-run firms Philippine National Oil Co. and Maharlika Investment Corp. for the launch of the country’s first strategic petroleum reserve program.

However, the government executive could not provide details yet on how they would fund the project, but Garin was hoping to keep this out of the national budget.

“And maybe we can attract investors or like Maharlika can help us find funding for this. So, it will likely be a mix of government participation or contribution plus private or our Maharlika funding,” she said.

Garin also reiterated Japan’s willingness to assist in this venture, saying that a team from the latter would arrive in the Philippines by end of the month or July.

READ: PNOC seeks P8 billion budget for fuel stockpiling

In an earlier joint statement, Japan and the DOE said the former would tap the expertise of the Economic Research Institute for ASEAN and East Asia, the Japan Organization for Metals and Energy Security, the Japan Bank for International Cooperation, Japanese trading companies and Japanese engineering firms.

Asked about the potential sites, Garin said the DOE was eyeing areas in Mindanao, Bataan and Subic.

“There are different sites and that’s why we need more feasibility study to check if they are ideal since you have to consider the logistics of delivering from the site to the gas stations,” she said. /pai INQ