Japan's Chiyoda Moving Toward Building Oil Reserves in the Philippines

In a significant move to enhance energy security in the Philippines, Japan's Chiyoda Corporation is moving toward building oil reserves in the country. This initiative comes in response to a national energy emergency declared this year due to low oil reserves and supply disruptions linked to the Iran war.

According to the Philippine National Oil Company (PNOC), the feasibility study for a possible strategic petroleum reserve facility in Bataan is expected to be completed by the end of 2026. This study is for a proposed 15-million barrel reserve in Bataan, which would serve as a crucial buffer against sudden supply disruptions and price volatility. PNOC Corporate Secretary Antonio Buenviaje noted that this project is part of a broader initiative to strengthen the Philippines' oil stockpiling capabilities, which are essential for ensuring stable energy supplies during crises.

“By exploring strategic petroleum storage capacity, MIC is helping prepare the country for supply disruptions, price volatility, and the growing energy needs of a modernizing economy.”Rafael D. Consing, Jr., President and CEO, Maharlika Investment Corporation

The collaboration between Japanese entities and the Philippines aligns with recent efforts by Japanese companies to support Southeast Asian nations facing energy challenges. The Japanese government has expressed its commitment to assist the Philippines through the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), which aims to enhance oil security across the region.

On October 8, 2026, a Joint Statement was signed between the Japan International Cooperation Agency (JICA) and the Philippine Department of Energy (DOE) to promote cooperation in oil security. This agreement includes data collection and analysis of the current state of oil supply and stockpiling systems in the Philippines, as well as the development of policy recommendations tailored to the country's unique circumstances.

“This MoU reflects PNOC’s continuing commitment to strengthen the infrastructure foundations of Philippine energy security.”Franz Josef George E. Alvarez, President and CEO, Philippine National Oil Company

Energy Secretary Sharon Garin has indicated that the establishment of a national oil stockpile, akin to an emergency fund but for crude oil, is vital for the Philippines, which imports a significant portion of its fuel. The government aims to create a reserve that can be tapped during times of crisis to stabilize supply and prices. The estimated cost for the pilot phase of this project is approximately 5 billion Philippine pesos (around $89 million), with plans for a facility capable of storing between 500,000 to 1 million barrels.

The Philippine government is developing feasibility studies, site evaluations, financing options, and implementation models, with initial assessments indicating that the project may be implemented in phases, allowing the gradual building of strategic inventories over time. A technical mission involving Japanese government institutions and private sector partners is expected to visit the Philippines to support planning and feasibility activities.