THE Philippines is pursuing a partnership with the United Arab Emirates (UAE) to build a strategic oil storage hub that could help protect consumers from global price shocks and fuel supply disruptions.
Sen. Erwin Tulfo, chairman of the Senate Committee on Energy, led a Philippine delegation in talks with UAE officials on Oct. 29 on the proposed project, following an earlier meeting involving Senate President Sherwin Gatchalian, Tulfo and Abu Dhabi National Oil Co. (Adnoc) representatives.
The initial meeting, held at the Senate, was attended by UAE Ambassador Mohamed Obaid Alqataam Alzaabi and Adnoc officials.
Gatchalian described the discussions as meaningful.
During the Oct. 29 discussions, Tulfo said he has been pushing for the oil hub “because we see how beneficial it would be for Filipinos who are experiencing price shocks from high oil prices because we lack access to it.”
The Philippine delegation included Ambassador to the UAE Alfonso Ver and Special Envoy to the UAE for Trade and Investment Kathryna Yu-Pimentel.
The UAE delegation, led by Adnoc Chairman Sultan Ahmed Al Jaber, expressed willingness to pursue the partnership.
Adnoc supplies Petron Corp. with about 40,000 barrels of oil a day, and UAE officials said the proposed hub could help increase supply volumes.
The UAE team also proposed sharing an existing storage contract framework for Philippine review as discussions move forward.
The proposed partnership gained further backing from Gatchalian, who, on Oct. 26, urged the state-owned Philippine National Oil Company (PNOC) to move quickly on the opportunity.
Gatchalian said Adnoc was prepared to shoulder the cost of storage tanks and oil inventory, provided PNOC made suitable land available for the facility.
He also said Adnoc wanted an arrangement granting the Philippines the right of first refusal to purchase the stored oil when needed.
“PNOC should not dilly-dally because Adnoc is ready,” Gatchalian said.
The parties identified the second quarter of 2027 as a target for the project’s rollout, subject to further agreements on the site, infrastructure responsibilities, commercial terms and implementation schedule.
The hub would anchor a broader energy partnership covering crude oil supply, refinery investments, fuel retail networks, renewable energy and gas-to-power development.
Tulfo said such a partnership had yet to be finalized but vowed to lead follow-up discussions to move the project forward.
