New player to invest P130M in petroleum product plant in Bataan

Cabcaben Storage Corp. (CSC), a new player in the deregulated oil industry, will invest P130 million to establish a petroleum product facility in the Bataan Peninsula.

CSC acquired a 47,304 sqm coastal property in Sitio Catbalogan II, Mariveles, Bataan where it will locate its site as a fuel source for international bunkering market.

CSC has built a storage tank farm with an initial capacity of 6 million liters of fuel and a pier facility capable of handling tankers weighing up to 30,000 deadweight tons.

The storage facility will be extended to its affiliate companies, Filpride and TWA Inc., to maximize the earning potential for these companies.

Trade and Industry Secretary Juan B. Santos said that with the increasing price in petroleum products in the world market and the pressure from both private and public sector to temper oil prices, local oil companies, especially the new players, have been experiencing reduced margins.

It is a challenge then for the new players in the deregulated oil industry to develop new strategies in order to remain competitive.

Thus, as part of the project, CSC is establishing its own marketing and distribution arm. In doing so, the company can harness synergies of a more comprehensive supply chain that can give the buying public reasonable pump prices for diesel and gasoline.

The whole business process then for CSC will span from sourcing and importation of petroleum products, to storage, transshipment and wholesale.

CSC is a Filipino owned corporation whose major stockholder is Ramon Villavicencio. The project will generate 21 new jobs.