No pipe dream

First Philippine Holdings Corp. chairman Oscar Lopez describes it as a "culture of continuous improvement." Lopez is referring to First Philippine Industry Corp., owner and operator of the country’s major oil pipeline transport.

A member of FPHC’s energy group, FPIC received two months ago three ISO certificates–ISO 9110 for its quality system, ISO 14001 for its environmental management system, and OHSAS 28001 for its occupational health and safety management system.

"This is the first integrated tri-standard audits that we have performed and demonstrates FPIC’s extraordinary commitment in maintaining quality," said SGS Phils. managing director David Robinson.

Efficient alternative

FPIC operates two pipeline systems, which start in Batangas and end at the Pandacan oil depot. One system transports white oil products such as diesel, gasoline, kerosene, aviation fuel, and turpentine; and another system transports black oil products such as bunker fuel and reduced crude oil feedstock or crude oil.

About 10.8 million liters a day pass through these pipelines. This translates to approximately 25% of the country’s entire fuel consumption or at least 50% of the National Capital Region’s fuel needs.

"Pipelines are an efficient alternative to lorries and it is vital that what we operate is of the highest standards," said FPHC managing director for energy Peter Garrucho, Jr.

It would take the equivalent of 1,000 lorries–with a lorry coming in and going out of the terminal every two minutes and one lorry every one kilometer from Batangas to Pandacan–to daily transport the same volume of oil products. Cost-wise, a lorry is also three to four times more expensive than the rates of the oil pipeline, in part because the truck ban limits its traveling time to only two-thirds of each day.

Primary concern

"Safety is a primary concern," said FPIC president Tony Mabasa, despite US statistics that accidents are 35 times more likely to happen in a lorry than in a pipeline.

Three years ago, FPIC pursued an extensive maintenance check for leaks, cracks or corrosion. The survey, which was completed in May 2000, showed the pipelines were generally in good condition, requiring only routine repairs and maintenance for the black oil pipeline.

In terms of pipeline monitoring, the system control and data acquisition or SCADA Phase 2 project was completed in August 2000. This included the additional valve sites for remote control from the SCADA server at the joint terminal facilities in Pandacan; cathodic protection system monitoring; and a leak detention system for the two lines.

"The ISO certifications as well as the continuous training in risk assessment, safety and housekeeping, and environmental management are just the start of our journey towards a stronger and more competitive FPIC," said Mabasa.

It certainly is in line with Lopez’s vision to make FPIC the leader in the oil logistics business.