THE United States is exploring possible involvement in building the Philippine strategic oil reserve, the Department of Energy (DoE) said.

The discussions took place during a meeting between Philippine Energy Secretary Sharon S. Garin and US Energy Secretary Chris Wright in Washington, D.C., on Oct. 15.

“Strengthening our partnership with the United States will help us diversify our energy sources, develop indigenous resources, and build the technical capabilities needed to support our long-term energy security,” Ms. Garin said in a statement on Sunday.

Beyond the oil reserve, the two sides identified broader areas of potential cooperation spanning liquefied natural gas, coal, geothermal, and nuclear energy, as well as natural hydrogen.

The officials explored opportunities for the Philippines to draw on US experience in emergency oil stockpiling and preparedness for international supply disruptions. Strategic reserves are government-held stockpiles of crude and refined products meant to cushion economies against sudden supply shocks, and the United States has operated its own Strategic Petroleum Reserve since the 1970s. As a net oil importer, the Philippines was among the countries hardest hit by the US-Israel war on Iran, which disrupted oil supplies from the Middle East. The government has since moved to shield the country from future oil shocks by building a strategic petroleum reserve. The reserve’s size, storage arrangements, financing, and the exact form any US involvement would take have yet to be detailed.

Nuclear Energy Cooperation

The two officials also reviewed progress on earlier nuclear energy cooperation projects covered by the Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy, commonly known as the 123 Agreement, which was signed in 2023 and came into force in 2024. Such agreements are the standard US legal framework for civil nuclear trade, clearing the way for American reactor technology, materials, and expertise to reach a partner country.

They likewise discussed US support for the Philippines’ nuclear power preparations, including a program that builds technical and institutional capacity for the safe and responsible development of small modular reactors. The US Trade and Development Agency will organize a reverse trade mission to connect Philippine officials and industry representatives with US nuclear technology providers and experts in financing, regulation, and workforce development.

Under the Philippine Energy Plan, nuclear energy is set to be integrated into the national power mix with at least 1,200 megawatts of capacity by 2032, doubling to 2,400 MW by 2045 and to 4,800 MW by 2050.

Indigenous Resources

On indigenous energy development, the officials explored opportunities in geothermal energy and natural hydrogen, including Koloma’s native hydrogen exploration activities in the Philippines. The Philippines is already one of the world’s leading producers of geothermal power, while natural hydrogen — geologic hydrogen found in underground deposits — remains at an early stage of exploration worldwide. Koloma was the first company awarded natural hydrogen exploration service contracts in the country and now holds three contracts covering more than 4,100 square kilometers in Central Luz and western Zambales.

The DoE said it “continues to pursue international partnerships that strengthen the country’s resilience against energy supply disruptions, support the responsible development of domestic resources, and expand access to reliable and affordable energy.”

— Sheldeen Joy Talavera

Source: BusinessWorld