DOE Eyes Zamboanga for Major Oil Storage Hub

The Department of Energy (DOE) is considering Zamboanga as a potential site for a large-scale oil storage facility with a capacity of 50 million barrels. This move is seen as a significant step towards establishing the Philippines as a regional oil storage hub for Asia and enhancing the flexibility of the nation's strategic petroleum reserves. DOE Undersecretary Alessandro Sales stated that the department recently held discussions with the Abu Dhabi National Oil Company (ADNOC) and Saudi Arabia's Aramco regarding the planned oil facility. These companies are expected to fund the construction of the facility and the oil products to be stored, serving as a commercial storage for regional sales. The facility will also provide flexibility in managing the Philippines' own National Strategic Petroleum Reserve. The country could either build its tanks alongside the commercial facility to save costs or arrange access to the stored products, thereby reducing direct expenditure on tank construction. Previously, the DOE had explored a proposal for an Aramco oil facility on land owned by the state-run Philippine National Oil Co. (PNOC) in Bataan province. However, this plan was deemed unfeasible as 500 hectares of land are required to accommodate 50 million barrels, far exceeding the 150 hectares available in Bataan. A site in Northern Mindanao was also considered but was later excluded due to difficulties in land acquisition by the DOE. A larger area in Zamboanga is now being eyed as the primary option, with the DOE and PNOC planning a joint site visit. The agreement emphasizes fast-tracking land identification and acquisition to expedite the placement of strategic reserves within the country. The Philippine government aims to boost the country's stature as an oil storage hub for the entire Asian region by allowing foreign entities to build storage facilities within its territory. The DOE has indicated that in the event of oil emergencies, the Philippines would be prioritized for supply from these international storage hubs.