PH Senate panel presses DOE, PNOC to fast-track strategic oil reserve

Senate Energy Committee Chairperson Erwin Tulfo has urged the Department of Energy (DOE) and the Philippine National Oil Company (PNOC) to accelerate plans for a national strategic petroleum reserve, pointing to strong investment interest from major foreign partners.

During the panel's second hearing on proposed amendments to the Oil Deregulation Law, Tulfo revealed that the United Arab Emirates (UAE), Saudi Arabia, and Japan are waiting for regulatory clearance to construct fuel storage facilities in the country.

"The UAE expressed strong interest in building an oil depot here using their own budget, from which the Philippines will directly benefit," Tulfo told officials from the DOE and PNOC.

Director Dino Abad of the DOE Oil Industry Management Bureau confirmed the UAE proposal, noting that the agency has formed a dedicated Strategic Petroleum Reserve (SPR) team to coordinate with foreign entities.

Abad said ongoing discussions aim to guarantee priority access for domestic needs during supply crises. "These foreign nations want to align with our energy goals. Our priority is ensuring the Philippines receives priority supply rights if a crisis hits," Abad said.

PNOC Deputy Manager Antonio Buenviaje told lawmakers that the state firm is actively pursuing parallel efforts, forecasting that storage infrastructure could be operational by 2027.

When pressed by Tulfo for a definitive timeline on construction and stock replenishment, Buenviaje assured the panel that "facilities will be ready" by 2027.

Oil industry representatives attending the hearing agreed that a robust buffer stock would help insulate consumers from global market volatility and potentially lower local pump prices.

To attract major foreign producers, Tulfo called on the executive branch to streamline permit approvals and eliminate regulatory bottlenecks.

"We must strengthen national energy security," Tulfo emphasized. "The government needs to simplify permitting processes so international producers are encouraged to build reserves here."

-Paraluman News