Study for PH strategic fuel reserve facility in Bataan done by end of 2026 —PNOC

The Philippine National Oil Company (PNOC), tasked to implement the proposed national oil stockpiling program, on Thursday said the feasibility study for a possible strategic petroleum reserve facility in Bataan will be completed by the end of the year.

This was divulged by PNOC Corporate Secretary Antonio Buenviaje during the Senate Committee on Energy’s public hearing on measures amending the Downstream Oil Industry Deregulation Act of 1998 and establishing the Philippine Strategic Petroleum Reserve.

In particular, Buenviaje said PNOC is in coordination with Japan’s Ministry of Economy, Trade and Industry “to have a feasibility study for a 15-million barrel reserve in Bataan by the end of 2026.”

Last month, Energy Secretary Sharon Garin announced that sovereign wealth fund Maharlika Investment Corporation (MIC) and PNOC are finalizing an agreement on a national oil stockpiling program.

A national oil stockpile is a strategic reserve of crude oil and refined petroleum products maintained by the government.

EXPLAINER: What is national oil stockpiling?

It is akin to an emergency fund, but instead of cash, the government will holds millions of barrels of oil designed as buffer against sudden disruptions such as geopolitical conflicts, natural disasters, and extreme price volatility.

A national oil stockpile is different from the fuel inventories maintained by the industry, which are mandated to maintain 15 days' worth of stock requirement.

The release of the national oil stockpile to the market could be triggered by the government when global oil supplies are choked to ensure supply continuity and prices are stable.

Buenviaje added that another study will be conducted after the study for Bataan strategic fuel reserve facility is completed.

“That’s for the establishment also of [another] 15 million-barrel reserve somewhere in Mindanao,“ he said.

For the Philippines’ national oil stockpile, Garin earlier gave an indicative cost and timeline, but said that an estimated P5 billion would be needed to build a system that would carry some 500,000 to 1 million barrels.

During the hearing, the Energy chief said if the pilot would be for one million-barrel of strategic fuel reserve, the construction of the facility would take about one year, noting that possible completion might be within the last quarter of 2027 or the first quarter of 2028.

The Japanese government has expressed support for the Philippines’ planned national petroleum reserve program, committing to provide technical assistance and assist with feasibility studies and capacity-building programs, drawing on its extensive experience in strategic petroleum reserve development.

The Energy Department said feasibility studies, site evaluations, financing options, and implementation models are now being developed. Initial assessments indicate that the project may be implemented in phases, allowing the government to gradually build strategic inventories over time.

A technical mission involving Japanese government institutions and private sector partners is expected to visit the Philippines later this year to support planning and feasibility activities. — BM, GMA News