Gulf Producers Offer Philippines Oil Storage Deals Amid Supply Crises

The Philippines has received offers from Saudi Arabia and the UAE to fund oil storage facilities in the country, providing an additional source of fuel during supply crises. The proposals are separate from a government-owned strategic petroleum reserve being developed by the Philippine National Oil Co. (PNOC) in Bataan.

According to Rino Abad, director of the Department of Energy's oil industry management bureau, Saudi Arabia will shoulder all the costs of its proposed storage hub, which could have a target capacity of 50 million barrels. The UAE has made a similar offer, with the facility remaining UAE-owned but providing priority access to fuel for the Philippines during emergencies.

Abad highlighted that the UAE and Saudi Arabia are among the Philippines' historical petroleum suppliers, and their export pipelines provide alternative routes away from the Strait of Hormuz. Establishing additional storage capacity could help mitigate external shocks on fuel supplies and prices.