Oil reserve to reassure investors of PHL energy stability, DoE says

By Sheldeen Joy Talavera, Reporter

THE PLANNED strategic oil reserve is expected to enhance perceptions of energy stability in the Philippines, making the country more attractive to investors, the Department of Energy (DoE) said.

The reserve will “also make the Philippines more attractive as an investment destination,” Energy Secretary Sharon S. Garin told the Money Talks with Cathy Yang program on Wednesday.

“If we have our own stockpiling in the Philippines, it protects us in a way, (sending the signal that) the inventory is here… whether it’s crude or it’s finished product,” she said, noting that such a reserve insulates the Philippines from Middle Eastern disruptions or volatile exchange rates.

Japan has offered to help conduct feasibility studies for the reserve and provide capacity building that will help the Philippines build up a stockpile.

The strategic reserve will complement commercial inventories maintained by private oil companies, who can tap the government’s stockpile during major supply disruptions, natural disasters, or other emergencies affecting fuel availability.

As of May 29, the Philippine fuel inventory was equivalent to 45.97 days’ demand, against 44.82 days a week earlier.

To establish the reserves the DoE is working with the Philippine National Oil Co. and Maharlika Investment Corp.

Ms. Garin said the partners are exploring financing mechanisms to ensure the project can proceed without drawing on the national budget.

“It can be funded (in many ways). Maharlika can come in, or even private institutions that can partner with us,” she said.

The Philippines has committed to participate in ASEAN-wide joint stockpiling to strengthen regional energy security and resilience, she said.

“This is a good opportunity for the Philippines and this is one advantage of being chair of ASEAN,” Ms. Garin said.