The Department of Energy (DOE) and Japan Oil, Gas and Metals National Corp. (JOGMEC) signed on Wednesday a memorandum of agreement (MOA) for a study that would update the 2002 Philippine National Oil Contingency Plan, as well as provide recommendations on the creation and operation of a Strategic Petroleum (SPR) Program.
“Today’s signing speaks volumes on Japan’s commitment to help the Philippines succeed in attaining its energy security goals. I take this opportunity to express our appreciation to the Japanese government and its private sector for helping us attain our long-term goals,” Energy Secretary Alfonso Cusi said.
The MOA is an offshoot of the DOE’s collaboration with Japan’s Ministry of Economy, Trade and Industry (METI) and JOGMEC to update the 2002 METI study, “Master Plan for the Development of Stockpiling for the Philippines.”
Under the MOA, JOGMEC will conduct a study within eight months of its signing, and the parties shall have a one-year consultative period after the submission of the final report.
Among others, the study would include the petroleum products’ supply and demand situation in the past five years and the expected growth for the next 20 years; the international strategic petroleum reserve program situation in the past five years to address supply disruptions;
Philippine government-owned and privately owned crude oil and finished petroleum products’ storage facilities in the past five years and the expected growth for the next 20 years; existing Philippine policies and implementation to address petroleum products’ supply for normal demand, as well as demand for contingency/emergency response due to any international or domestic supply disruption;
An analysis of the gaps in the existing Philippine government-owned and private-owned petroleum products’ storage facilities to address the existing and the expected growth in demand, as well as the contingency/emergency response during any international and domestic supply disruption;
An analysis of the role of the DOE, the Philippine National Oil Co. (PNOC) and other relevant government agencies to address the Philippine national petroleum products’ contingency/emergency supply strategies and measures; provide recommendations on the creation and operation of the Philippine SPRP; and submit to DOE the recommended updated 2002 Philippine National Oil Contingency Plan incorporating all the above data, information, analysis, SPRP recommendations and the overall recommendations on how to address the Philippine national petroleum products supply security and contingency/emergency response to any international or domestic supply disruption.
Two months after the completion of the study, JOGMEC will submit to the DOE its final output, an updated 2002 Philippine National Oil Contingency Plan, and all its corresponding relevant data and information. They will likewise provide relevant recommendations on the creation and operation of the Philippine Strategic Petroleum Reserve Program.
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