Energy PoliticsAnalysis
Philippines negotiates oil storage arrangements with six countries
Energy secretary confirms talks with Saudi Arabia, UAE, Russia, US, Kuwait and Australia as nation builds strategic reserves.
The Philippines is negotiating oil storage arrangements with Saudi Arabia, the United Arab Emirates, Russia, the United States, Kuwait and Australia, Energy Secretary Sharon Garin confirmed on 29 October 2026. The discussions form part of the nation's effort to build strategic fuel reserves, Garin stated at the Singapore International Energy Week conference.
Storage capacity and reserve targets#
The Philippines plans to construct its first government-owned storage facility in Bataan in 2027 to hold strategic oil reserves. Current fuel inventories stand at 55 days, up from a 15-day minimum requirement, Garin stated. The government holds 1 million barrels of oil stocks in private facilities and aims to scale that volume over time to reach a 60-day reserve, split evenly between crude and refined fuels. Average daily petroleum product demand was approximately 490,600 barrels as of May 2026, according to government data. The nation imports nearly all its energy needs.
Regional storage agreements under discussion#
Saudi Arabia announced an initial agreement to store crude in Singapore's rock caverns starting in 2027. The Philippines is working with Japan to develop regional oil stockpiles that would complement its national reserve, Garin said. The government has been collaborating with Tokyo on this initiative as it expands its storage capacity beyond the current 1 million barrel holding in private facilities. The regional approach forms part of the nation's broader strategy to increase fuel security.
Power generation adjustments for 2027#
The Philippines plans to increase diesel and gas-fired power output to compensate for an estimated 60 percent decline in hydropower and 20 percent fall in solar output in the first half of 2027 due to the El Niño weather phenomenon. The government intends to install 2 gigawatts of new coal-fired power plants over the next five years alongside 8 gigawatts of additional renewables capacity by 2028. Garin cited the need for steady, secure energy to support economic progress and noted geographical limitations as an archipelago nation.
Sources1 source across 1 domain
- khaleejtimes.comKhaleej TimesPhilippines in talks with Saudi Arabia, UAE, Russia, US, Kuwait and Australia on oil storage; current inventories at 55 days; plans for Bataan facility in 2027; hydropower and solar output decline estimates for 2027; Saudi Arabia announced agreement to store crude in Singapore starting 2027
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