The Philippines Department of Energy (DOE) has unveiled plans to establish a strategic petroleum reserve (SPR) for the country.
The SPR will include stocks of crude oil, finished petroleum products, and biofuel. The DOE says it will help to lessen the Philippines’ vulnerability to disruptions in the supply and price of imported oil improving fuel security and allow the government to respond to a severe international supply interruption or to implement the Targeted Fuel Relief Program, whereby the government will provide fuel assistance to marginalised fuel‐consuming sectors affected by crisis situations.
A new circular lays out the implementation guidelines for the Philippine Strategic Petroleum Reserve Program (PSRP). The programme will be jointly implemented by the Philippine National Oil Company (PNOC) and the DOE. PNOC previously carried out a feasibility study into setting up an SPR in the Philippines in 2019.
“This circular will help bring the country closer to attaining energy security by decreasing our dependence on the importation of crude oil and finished petroleum products to meet our fuel requirements,” said energy secretary Alfonso G Cusi.
According to the implementation guidelines in the circular, PNOC will acquire the necessary storage and blending capacity by construction, lease, or other acquisition options, based on the minimum and maximum levels specified in the feasibility study.
PNOC will be responsible for setting up appropriate supply contracts and product type portfolio, so that it can meet the objectives of the PSRP. The company is also required to establish a distribution chain, either by lease or acquisition, to distribute products in line with the intended purpose of the PSRP, from the transport logistics down to the fuel discharge to the end-consumers.
For more information visit www.doe.gov.ph
