The United Arab Emirates (UAE) and Saudi Arabia have expressed interest in establishing commercial oil storage facilities in the Philippines, a move that could significantly bolster the country’s energy preparedness during global supply emergencies.
Department of Energy (DOE) Oil Industry Management Bureau Director Rino Abad revealed that the foreign-owned hubs would operate commercially while providing a vital security buffer for the Philippines at zero cost to the government.
“The proposed facilities would not require the Philippine government to spend funds for their construction and operation,” Abad said, emphasizing that the setup protects national resources while enhancing fuel security.
Under the proposed arrangement, the facilities will target a massive storage capacity of 50 million barrels of oil. While foreign investors will operate the hubs commercially, the Philippine government is negotiating terms to secure priority “reserve rights” or preferential access to the stockpiles in the event of an international supply crunch.
Abad explained that this structure guarantees the Philippines will not be left vulnerable during global disruptions or severe price volatility in international oil markets.
The initiative forms a core component of the country’s broader goal to establish the Philippine Strategic Petroleum Reserve. The newly formed Philippine Strategic Petroleum Reserve team is already actively coordinating with Saudi officials to finalize details on the proposed facilities.
If approved, the foreign-backed storage infrastructure will add a crucial layer of energy protection for the country while positioning the Philippines as a regional logistics hub for Middle Eastern petroleum exports.