“Nonoy” Libanan
TACLOBAN CITY—Amid rising concerns over global oil supply disruptions, House Minority Leader Marcelino “Nonoy” Libanan is urging the government to strengthen the country’s energy security by developing strategic petroleum storage facilities in the Visayas and Mindanao.
Libanan called on the state-owned Philippine National Oil Co. (PNOC) to invest in critical coastal fuel depots that would serve as buffer reserves, protecting the country from volatile global oil prices and supply shocks linked to ongoing tensions in the Middle East.
“The oil crisis caused by the U.S.-Israeli war on Iran clearly underscores the urgent need for the government, through PNOC, to establish its own emergency fuel reserves,” Libanan said in a statement on Sunday, March 29.
“We need a government-managed buffer stock of key petroleum products—particularly diesel, gasoline, and jet fuel—that can be rapidly deployed during times of crisis,” he added.
The lawmaker emphasized that establishing storage facilities outside Luzon would help ensure a more balanced and efficient fuel distribution system nationwide. He specifically urged PNOC to prioritize coastal hubs in the Visayas and Mindanao to improve accessibility in these regions.
As a model, Libanan pointed to the Subic Bay Freeport Zone facility operated by Philippine Coastal Storage and Pipeline Corp. (PCSPC), which has a storage capacity of 6.3 million barrels, or roughly one billion liters, of fuel. The facility currently supplies Luzon, including much of Metro Manila, through a wide network of petroleum clients.
The Subic facility is owned by I Squared Capital, a U.S.-based private equity firm focused on global infrastructure investments.
“Developing coastal petroleum storage facilities is fully aligned with PNOC’s core mission, and a national buffer stock would help extend the country’s ability to withstand severe global or domestic energy disruptions,” Libanan said.
PNOC was established in 1973 following the global energy crisis triggered by the Arab oil embargo, with the mandate of ensuring a stable energy supply and promoting self-sufficiency.
The Department of Energy (DOE) recently authorized PNOC to procure up to two million barrels of buffer fuel in response to continued instability in the Middle East and Malacañang’s declaration of a state of national energy emergency.
An initial shipment of 22.58 million liters, equivalent to about 142,000 barrels of diesel, arrived in the country on March 26.
PNOC has so far secured 165.7 million liters of fuel, with additional deliveries expected throughout April, according to Energy Secretary Sharon Garin.
(LIZBETH ANN A. ABELLA)
