Philippines negotiates oil storage with seven nations

The Philippines is negotiating oil storage arrangements with Saudi Arabia, Russia, the United States, Japan, Kuwait, the United Arab Emirates, and Australia. The initiative aims to cushion the economy against sudden price surges following supply disruptions caused by US-Israeli strikes on Iran in February.

Energy Secretary Sharon Garin warned that the country faces significant energy challenges due to the El Niño phenomenon. Projections suggest hydropower generation could plunge by 60 percent and solar output could drop by 20 percent in the first half of 2027. To address these gaps and rising demand, the government plans to bring two gigawatts of new coal-fired capacity online within five years, alongside a goal of adding eight gigawatts of renewable capacity by 2028.

While the administration prefers clean energy, officials noted that the archipelago's physical constraints and growing electricity needs require a steady, secure energy supply. Current fuel stocks cover 55 days of consumption, exceeding the mandated 15-day minimum.