Sovereign wealth fund (SWF) manager Maharlika Investment Corp. (MIC) is pivoting its financing toward energy infrastructure to strengthen national energy security amid a period of sustained volatility in oil markets.

In an interview with CNBC last week, MIC President and Chief Executive Officer (CEO) Rafael Jose D. Consing Jr. explained that state-run MIC is in active discussions with the national government to secure sufficient oil reserves that would mitigate the risks of geopolitical shocks to the nation.

“What we’re aiming for, hopefully, is that they build storage capacity and support the plans of the government; they eventually put together [an effective] strategic reserve,” he said.

“We’re having those discussions thoroughly, and hopefully, sometime within this year, we can announce a project aiming toward that objective,” Consing added.

Currently, the Department of Energy (DOE) is set to procure 900,000 barrels of diesel this month from various sources, as its most recent procurement from Malaysia of about 329,000 barrels arrived in the Philippines on Saturday, April 11.

Consing further noted that beyond petroleum for the transport sector, MIC is focused on enhancing rural electrification to significantly reduce the country’s reliance on expensive diesel-powered generators. This includes its investments in the national grid, as well as efforts to improve power distribution in far-flung areas.

“Our investment in the national grid is in that, and also helping out to put together a distribution system in the rural areas, which currently are not connected to the grid, because if you look at the sources of fuel or energy for these, these are generators... And they’re about, I would say, maybe about 95 percent [is] driven by diesel and bunker fuel,” he added.

To recall, MIC is set to finalize a 20-percent stake in Synergy Grid & Development Philippines Inc. (SGP), but as previously reported, due to additional documents needed, the acquisition has not yet been finalized. SGP serves as the listed holding company that holds a controlling economic interest in National Grid Corp. of the Philippines (NGCP), effectively acting as the investment vehicle through which ownership exposure and returns from the country’s transmission operator are channeled.

Apart from its grid investment awaiting a close deal, Consing told Manila Bulletin that its transmission investment in Mindoro is already in the works, as MIC is actively investing in stand-alone electricity distribution systems for the island, as well as in Palawan province.

“Technical and financial due diligence are ongoing for Mindoro. Once concluded, we will commence with Palawan,” he said in a Viber message. To recall, MIC has provided financial aid to improve Mindoro Island’s secondary transmission backbone as well as to modernize Palawan’s energy infrastructure.