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Philippine energy dept., Japanese firm sign oil reserve plan deal

  • May 12, 2021
  • , Kyodo News , 9:26 p.m.
  • English Press

The Philippine Energy Department and a Japanese corporation signed a memorandum of agreement Wednesday under which they will cooperate in creating a petroleum reserve plan of the Philippines in a bid to prevent any shortage that could arise from the coronavirus pandemic and other factors.

 

Officials of the Energy Department and Japan Oil, Gas and Metals National Corp., a Japanese incorporated administrative agency, signed the agreement, starting an eight-month study for creating the oil stockpiling program as well as updating the Southeast Asian country’s oil contingency plan.

 

Philippine Energy Secretary Alfonso Cusi said petroleum imports can be disrupted by such factors as geopolitical issues, volatility of the global oil market and the coronavirus pandemic.

 

“We have been actively seeking all potential ways to ensure the availability of sufficient energy supply, most specially in the face of local or global disruptions,” Cusi said in a video conference.

 

The Philippines has not stockpiled petroleum, while the Energy Department started discussions on the issue in 2018.

 

The department had sought the collaboration with JOGMEC in creating the reserve plan, based on a proposal made last year by state-owned Philippine National Oil Corp. that detailed how much of oil is needed in case of supply distress so that it can be provided to government-owned power plants, the public transport sector and consumers.

 

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