Mindanao Energy Plan targets bulk oil stocks to avoid shortage

Photo shows the Mindanao Import Facility located in Cagayan de Oro City. The Fuel import facility is seen to increase energy security in the Visayas and Mindanao Regions. This is the second biggest in the country. (Photo By Ercel Maandig)

CAGAYAN DE ORO CITY–Mindanao’s 25 million inhabitants need a strategic stockpile of oil stocks to cover at least 30 days of demand to prevent any foreseeable shortage.

This was part of the Mindanao Energy Plan 2040 bared by the Department of Energy (DOE) on Thursday.

Michael Sinocruz, of the DOE’s Energy Policy and Planning Bureau, said oil remains the most consumed fuel in the island at 2,123 kilotonne of oil equivalent (Ktoe) or approximately 43% among all available fuel sources.

Electricity came in second at 20.5% followed by biomass (22%), coal (13%), biofuels (1.4%), and natural gas (0.2%).

“With an upbeat oil demand projection in Mindanao, it is important to maintain commercially held sufficient oil stocks. Investment for the development of oil storage infrastructure must be promoted,” Sinocruz said.

Mindanao’s total petroleum consumption stood at 10,142 million barrels (MB) in 2017, with 60%  going to Regions 10 and 11.

Transport accounts for the highest consumption at 1,587 Ktoe, followed by industry (1,537 Ktoe), and residential (1,288 Ktoe). The rest went to commercial and agriculture uses. Based on the DOE study, the current 2,123 Ktoe consumption is expected to triple to 7,417 Ktoe by 2040 according to current population and investment trends.

To prepare for this demand surge, DOE said Mindanao needs to put up its own oil refinery that produces 100 MB a day.

Because transport accounts for the highest fuel needs in the island, DOE is also recommending to enhance the current trend of ride-sharing schemes in the island. (Ercel Maandig/PNA)

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