Philippines strategic petroleum reserves remain a priority

• May 19, 2020

MANILA, Philippines — The creation of the country’s strategic petroleum reserve remains a priority despite difficulty in its implementation, according to Energy Secretary Alfonso Cusi.

State-run Philippine National Oil Co. (PNOC) would still pursue its planned oil strategic reserve storage because the country needs it, Cusi said.

“It’s still a go especially now that we need it,” Cusi, who also sits as ex-officio chairman of PNOC, said. “That is still a priority project.”

The energy chief, however, clarified that the plan would not cover the country’s overall fuel demand, but would only serve as a buffer.

“What we are aiming for is to balance volumes to serve as buffer. We’re not looking to meet the country’s demand,” Cusi said.

PNOC is undertaking a feasibility study on the strategic petroleum reserve following a Department of Energy (DOE) memorandum issued in December 2019 which orders to begin plans on the creation of the government’s stockpile program.

Earlier, the DOE cited technical and budgetary issues as hurdles that must be overcome to build the country’s strategic petroleum reserve.

Cusi said the feasibility study is still ongoing amid the enhanced community quarantine.

“They are finalizing the feasibility study already and we’ll make an announcement in due time. It is continuing and we are looking at how we can best achieve it,” he said.

“There are regulatory policies that we have been doing, and there are also many variables. So the studies being conducted are continuous for our country’s energy security,” Cusi said.

On the budgetary constraint, DOE-Oil Industry Management Bureau (OIMB) director Rino Abad earlier said now is the best time for the government to procure cheap fuel, but the government can only move as much as its budget.

With DOE’s on hand budget covering only the first half of the year, the agency cannot procure fuel for the rest of the year.

Source: https://www.philstar.com/business/2020/05/19/2014875/philippines-strategic-petroleum-reserves-remain-priority