Nations must honour oil pacts amid export curbs, says Philippines
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The Philippines is particularly vulnerable as it imports nearly its entire oil requirements, bulk of it from the Middle East.
PHOTO: EPA
MANILA – The Philippines is in talks with Indonesia and Russia as the nation races to secure its fuel supply, according to Energy Secretary Sharon Garin, who said countries must honour trade contracts as the Iran war rages on.
Manila’s energy officials and diplomats have approached nations that supply fuel to the Philippines to continue the “longstanding agreements” with them “because we have good relations with these countries also”, Ms Garin said in a briefing on March 16. They include China, South Korea, Singapore, Thailand and Japan, she added.
The Philippines is in discussions with Indonesia for coal imports to ensure that Manila’s electricity supply remains stable, Ms Garin said. Indonesia is the Philippines’ main supplier of coal, which fuels more than half of its power grid.
The Philippines’ lone refiner, Petron Corp, is in talks with suppliers of Russian oil as the country looks at alternative exporters.
Petron is in discussions with Russian crude oil traders, chief executive officer Ramon Ang said in a text message.
Nations across the world are scrambling to secure their own supplies as the Middle East conflict tightens availability.
In South-east Asia, Vietnam has said crude not yet committed for export must be sold to local refineries, while Thailand halted some outbound shipments of oil and rice.
Indonesia said it would prioritise its coal and palm oil output for local needs.
At last week’s meeting in Manila of economic ministers from ASEAN, the regional bloc failed to secure any firm commitments from its members to waive export curbs, although discussions will continue.
The Philippines, a nation of 113 million people, is particularly vulnerable as it imports nearly its entire oil requirements, the bulk of them from the Middle East.
“I’m not nervous as long as there’s no hoarding,” Ms Garin said when asked about the possibility of shortage.
Her agency had warned profiteers and hoarders of imprisonment.
“I do believe that we won’t run out (of fuel),” she said, but added that the country needs to manage its consumption. BLOOMBERG
