Manila is negotiating oil storage arrangements with Saudi Arabia, Russia, the
United States, Japan, Kuwait, the UAE and Australia to hedge against fuel-price
spikes from a potential Iran conflict. The government plans to boost diesel- and
gas-fired generation to offset El Nifio-driven declines in hydro and solar
output; hydro generation is expected to fall about 60% in 1H 2027 and solar
about 20%. Manila will build its first state-owned storage tank in Bataan next
year for a strategic petroleum reserve. Current fuel stocks cover roughly 55
days versus a 15-day minimum requirement; about 1 mln bbl are held in private
facilities. The SPR will start at 1 mln bbl and expand annually toward a 60-day
target, split roughly 50:50 between crude and refined products.