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Philippines in talks with ADNOC for oil storage facility by Q2 2027
Proposed facility would serve as regional hub under UAE-Philippines CEPA signed in June.
The Philippine government is in discussions with Abu Dhabi National Oil Co. for a strategic oil storage facility targeting completion in the second quarter of 2027. Senate Energy Committee Chairperson Erwin Tulfo held talks with ADNOC in Abu Dhabi on 29 October, according to local media reports. The proposed facility follows the UAE-Philippines Comprehensive Economic Partnership Agreement signed in June.
Scope and commercial terms under negotiation#
The discussions addressed crude supply arrangements, investment in refinery capacity, development of fuel retail distribution, renewable energy projects and gas-to-power infrastructure. The UAE team proposed sharing an existing storage contract framework for Philippine review. The timeline remains conditional on agreements covering the facility's location, infrastructure responsibilities, commercial terms and implementation schedule. The parties have not yet executed a binding agreement. Ambassador to the UAE Alfonso Ver and Special Envoy for Trade and Investment Kathryna Yu-Pimentel joined the Philippine delegation and stated that cooperation between governments combined with private sector involvement could enable the project.
Import dependence and price exposure#
The Philippines imports nearly all its energy needs. The country plans to increase diesel and gas-fired power output to compensate for an estimated 60 percent decline in hydropower and 20 percent fall in solar output in the first half of 2027 due to the El Niño weather phenomenon. The proposal comes as the Philippines faces price pressure from a weaker peso, global oil movements and supply disruptions. On 28 October, Philippine Secretary Sharon Garin told Reuters the country is negotiating with Russia and the United States regarding oil storage arrangements in the Philippines, which depends on fuel imports.
Parallel discussions with Saudi Aramco#
Saudi Aramco has been in talks and preliminary evaluations with the Department of Energy and the Philippine National Oil Company to fund, build and operate a commercial oil storage and export hub in Bataan, Philippines, according to reports. The Saudi discussions are separate from the ADNOC proposal. Both initiatives remain at the negotiation stage with no binding commitments disclosed.
Next steps and conditional target#
Tulfo said he would lead follow-up discussions to move the initiative forward. The second quarter 2027 target depends on finalisation of commercial and infrastructure terms between both governments. Key outstanding items include site selection, ADNOC's storage contract framework review and financing details. The proposed facility would serve as a regional oil hub for ADNOC under the terms being negotiated.
Sources1 source across 1 domain
- gulfnews.comGulf NewsADNOC discussions held 29 October, Q2 2027 target, CEPA signed June, scope of talks, conditional timeline, Philippine delegation composition, Saudi Aramco Bataan talks, Sharon Garin statement 28 October, hydropower and solar output projections for H1 2027
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