The Philippines is negotiating with Saudi Arabia, Russia, and the United States to establish oil storage facilities within the country, a move designed to buffer the fuel-import-dependent economy against price volatility stemming from the Iran conflict.
According to Energy Secretary Sharon Garin, the Southeast Asian nation—which relies on imports for nearly all its energy requirements—also intends to boost diesel and gas-fired power generation. This increase aims to offset a projected 60 percent drop in hydropower and a 20 percent decline in solar output during the first half of 2027 due to the El Niño weather pattern.
Garin added that Manila is pursuing similar storage discussions with Japan, Kuwait, the United Arab Emirates, and Australia as it races to build strategic stockpiles following the disruption of supplies caused by U.S.-Israeli strikes on Iran in February.
