Two Gulf oil giants want to help the Philippines stock up on fuel. In a Senate energy committee hearing, the Department of Energy disclosed that Saudi Arabia has offered to fund an oil storage hub while the United Arab Emirates has made a similar pitch to build an oil depot, just as pump prices are set to climb again.
What was offered
DOE oil industry management bureau director Rino Abad told the panel that Saudi Arabia would shoulder all the costs of establishing a storage hub, with a target capacity of about 50 million barrels. A concept note the country requested has already been submitted, though the timeline and remaining documents have yet to be finalized. Senator Erwin Tulfo, who chairs the committee, said the UAE made a similar offer and assured the Philippines would be the first beneficiary if supply runs short, since the reserves would sit on local soil.
The three-pronged reserve plan
| Reserve effort | Who pays | Capacity | Status |
|---|---|---|---|
| Saudi-backed oil storage hub | Saudi Arabia (shoulders the cost) | Up to 50 million barrels (target) | Concept note submitted; talks continue |
| UAE-owned oil depot | United Arab Emirates | To be finalized | UAE to be formally approached next |
| PNOC Bataan strategic reserve | Philippine government | 1 million barrels initial, up to 15 million | Targeted operational by 2028 |
The foreign-backed projects are separate from the country’s own government-owned reserve. PNOC is building its first petroleum reserve facility in Bataan, which officials target to be operational by 2028, starting with an initial capacity of one million barrels that it plans to expand to 15 million. The first storage tank carries a requested budget of about PHP 8 billion. Given the Philippines consumes roughly 450,000 to 460,000 barrels a day, the initial stockpile would cover only a little over two days of demand, which is why officials want much larger buffer capacity.
Why it matters now
The push comes as fuel prices are forecast to surge next week, partly on Middle East tensions that have rattled global oil markets and shipping lanes such as the Strait of Hormuz. Abad noted that the UAE and Saudi Arabia have export routes that bypass the strait, giving Manila a steadier source when major shipping corridors are disrupted. Tulfo has urged the DOE and PNOC to speed up the paperwork, saying the country needs the buffer against external shocks. Building that buffer, with Gulf money and its own reserve combined, is now the government’s aim.
