Philippines energy security and oil storage initiatives

The Philippines is pursuing several initiatives to bolster its energy security and mitigate the impact of global oil price volatility. In late October 2026, the government began negotiating oil storage arrangements with seven nations, including Saudi Arabia, Russia, the United States, Japan, Kuwait, the United Arab Emirates, and Australia. These efforts aim to protect the economy from supply disruptions following US-Israeli strikes on Iran earlier in the year.

Energy Secretary Sharon Garin noted that the country faces additional challenges from the El Niño phenomenon, which is projected to significantly reduce hydropower and solar output in early 2027. To address these gaps, the government intends to increase both coal-fired and renewable energy capacity.

By November 2026, the focus shifted toward a specific partnership with the United Arab Emirates. A Philippine delegation, led by Senate Energy Committee Chairperson Erwin Tulfo, met with the Abu Dhabi National Oil Company to discuss developing a strategic oil storage facility. This cooperation may expand into broader areas such as crude supply, refinery investment, and gas-to-power development, with a tentative rollout target set for the second quarter of 2027.