By Myrna M. Velasco
The Senate committee on energy is pushing for a review of the proposed P37.2 billion strategic petroleum reserve (SPR) that the Department of Energy (DOE) has been pushing to become part of the country’s energy security agenda.
Senator Sherwin Gatchalian
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The review is being initiated through Resolution No. 359 that was filed by Senate Committee on Energy Chairman Sherwin T. Gatchalian on April 16 this year.
The scrutiny of the proposed SPR, the Congressional body stipulated, shall be anchored on the recent directive given to state-run Philippine National Oil Company (PNOC) “to conduct studies on various means” on how the installation of oil stockpile in the country will be carried out.
The Senate has cited that based on previous studies – mainly by the United States-DOE - the funding requirement for the propounded petroleum reserve shall be at least US$660 million or roughly P37.2 billion.
That is based on a blueprint covering construction and maintaining reserves for the first year with a capacity of 30 million barrels of crude oil, diesel fuel and liquefied petroleum gas.
On top of that, the Senate energy committee is calling for a re-assessment of the minimum inventory requirement (MIR) being enforced to the players of the deregulated downstream oil industry.
Based on rules previously laid down by the energy department, the oil companies and bulk suppliers are required to maintain 15 days of supply of petroleum products; and seven days of supply of LPG; while oil refiners are mandated to have 30 days of supply of crude oil and petroleum products.