Connect with us

Hi, what are you looking for?


PNOC seeks nod on creation of petroleum reserve

STATE-LED Philippine National Oil Co. (PNOC) is seeking legislative approval on its plan to establish a national strategic petroleum reserve (SPR) that will serve as the country’s permanent oil stockpile.

At a Senate energy committee hearing on Wednesday, PNOC President and Chief Executive Officer Jesus Cristino P. Posadas described the reserve as the “development of a permanent oil stockpile, especially in times of severe disruption of oil supply.”

According to PNOC’s website, the reserve fuel will be stored in facilities located around the country, with the possibility of putting up facilities overseas.

Mr. Posadas said that the move is in response to geopolitical events, calamities, or emergencies. He said PNOC is targeting to engage an SPR transaction advisor within the fourth quarter of 2022 and will release a feasibility study within nine months.

Data from PNOC’s website showed that the Department of Energy (DoE) through DoE Memorandum Order 2019-11-0001 mandated the company to conduct a feasibility study and formulate an implementation plan for the establishment and operation of the SPR.

“This endeavor is aligned to PNOC’s mandate and reason for its creation as a government corporation: to ensure an adequate and stable supply of oil and petroleum products for the country’s domestic needs,” PNOC said on its website.

Mr. Posadas also said that the sale and monetization of its banked gas are consistent with the government’s efforts for additional power generation and contribute to electricity supply security.

He also said that PNOC and South Premiere Power Corp. (SPPC), a subsidiary of SMC Global Power Holdings Corp., entered a gas sale procurement agreement (GSPA) on June 23, 2022.

In a disclosure on Aug. 30, San Miguel Corp. (SMC) confirmed the purchase of the remaining banked gas of PNOC at 70.26 petajoules for $1.2 billion. The company said the purchase will support the projected fuel requirements of SPPC’s Ilijan power plant until February 2024.

“We are saddened that no delivery has been made on the sale of the remaining banked gas, that is the last remaining quantity of the total banked gas,” Mr. Posadas said.

Mr. Posadas said that the consortium behind Service Contract 38 and its operator, Shell Philippines Exploration B.V., had not heeded the directives of the DoE to deliver the quantity.

“They are giving us an excuse — the diminishing quantity of pressure of the banked gas reservoir, they are unable to deliver on that contract,” he said. — Ashley Erika O. Jose

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



REUTERS KYIV — The United States warned on Sunday of “catastrophic consequences” if Moscow uses nuclear weapons in Ukraine, after Russia’s foreign minister said...


South Korean President Yoon Suk-yeol. — REUTERS SEOUL — South Korean President Yoon Suk-yeol said on Monday “untrue” media reports over his remarks threatened...


STOCK PHOTO Image by Stefan Schweihofer from Pixabay TOKYO — The British pound tumbled nearly 5% to an all-time low on Monday as investors...


Follow us on Spotify BusinessWorld B-Side Nuclear energy has a bad reputation in the Philippines. That the Bataan Nuclear Power Plant is unfit and unsafe...


RESIDENTS line up for nucleic acid tests during a lockdown in Shanghai, China, April 17. — REUTERS BEIJING — A thousand days since the...


A protest in London against mandatory hijab in Iran. — Flickr DUBAI — Iran summoned the British and Norwegian ambassadors over what it...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.