Cusi: 2 private firms keen on oil storage facilities

Two private companies have proposed to put oil storage facilities to help secure the country’s reserve requirements, the Department of Energy said Friday.

Energy Secretary Alfonso Cusi did not disclose the identify of the two companies that expressed interest to put up the storage facilities. 

State-owned Philippine National Oil Co. is also studying the possibility of putting up a storage facility for the planned importation of lower priced diesel by unit PNOC Exploration Corp.

“Some private companies are proposing to do it (stockpiling). PNOC EC has not stopped pursuing strategic reserve,” Cusi said.

Cusi earlier said the oil importation would push through although it encountered delays due to procurement issues. 

“That will push through because we want PNOC to participate in the supply chain. Of course we are also addressing the reserve requirement of the country,” Cusi said. PNOC is the country’s oil and gas arm.

“Whether prices are high or low, we need ample reserve,” he said.

PNOC EC earlier negotiated with fuel suppliers for the delivery of the shipment of an initial 50,000 metric ton Philippine standard Euro-4 gas oil or diesel fuel after the second invitation to bid failed.

PNOC EC wanted a delivery of 50,000 MT of Euro 4 50 parts per million gas oil or diesel fuel “at any  safe port in the Philippines” designated by the company.

“I’m as impatient, I’m the first guy that is impatient about it but there are rules on procurement that they have to follow, the procurement law and of course there are other concerns that they are addressing,” Cusi said.

He said PNOC EC wanted to make sure the supplier would be able to deliver.