MANILA, Philippines – In a strategic move to enhance the country's energy security, the Maharlika Investment Corp. (MIC) is exploring a collaborative venture with the Philippine National Oil Co. (PNOC) and private sector players to develop oil storage infrastructure.
MIC chief Rafael Consing Jr. outlined the proposal during a congressional hearing on Wednesday, suggesting that a consortium could establish a "tank farm" to increase national stockpiling capacity. This initiative aims to reduce the Philippines' vulnerability to global oil supply disruptions and price volatility.
"We, alongside other members of the private sector, can invest in the tank farm, and then in fact outsource the operations to the private sector because we're only the capital provider," Consing told lawmakers.
The sovereign wealth fund, which has P68 billion in available investment capital according to Consing's recent statements, would serve as a financial catalyst for the project. Rather than directly purchasing fuel reserves—which would expose the fund to market price risks—MIC prefers to invest in storage facilities and generate returns through long-term leases.
"If we do it that way, we're not going to take market risk on the price of fuel, but rather we will be receiving our returns on the long-term lease," Consing explained.
Consing emphasized that PNOC and private partners would contribute land and assets to the consortium, while operational management would remain with private sector experts. "We don't know how to operate this," he acknowledged regarding the storage facilities. "We will leave it with the private sector to run it, but we will catalyze the investment if we get to that."
This proposal emerges amid broader discussions about mitigating the economic impact of fuel price crises, including potential tax adjustments, subsidy expansions, and infrastructure strengthening. The oil storage partnership represents a tangible step toward building more resilient energy systems for the Philippines.