MANILA, Philippines — Pilipinas Shell Petroleum Corp. opened a new import facility in Subic to bolster fuel supply in the country in anticipation of increased fuel demand.
This supports government’s efforts to jumpstart the economy amid the COVID-19 pandemic.
“We share government’s optimism and remain committed as the country’s partner in nation-building by leveraging our global expertise to strengthen our presence in the Philippines and bolstering supply ahead of Asia’s anticipated bounce-back in fuel demand,” Pilipinas Shell president and CEO Cesar Romero said in a statement.
In the second quarter, the Philippine economy saw a 16.9 percent dip in gross domestic product.
But as the contraction slowed to 11.5 percent in the third quarter, economists are optimistic that the economy will bounce back.
On a quarter-on-quarter basis, the economy grew eight percent.
With an expanded fuel supply network, Romero said the new facility also underpins the company’s thrust to grow its number of retail stations.
To date, Pilipinas Shell has 1,135 retail stations nationwide.
The Subic facility is the Pilipinas Shell’s third medium range (MR) vessel-capable import terminal and can receive 54 million liters of finished products in one shipment, allowing the company to maximize its efficiency and minimize its transshipment costs.
The facility, strategically located to enhance access to Regions 1, 2, 3, and the Cordillera Administrative Region, is an addition to Pilipinas Shell’s network of terminals and complements the two existing import terminals.
The Subic facility completes a robust supply triangle that Shell has created across the nation with its Tabangao refinery-turned-import terminal in Batangas and its North Mindanao import facility (NMIF) in Cagayan de Oro City in Mindanao.
Last May, Pilipinas Shell shut down its Tabangao refinery operations to conduct maintenance activities and assessment amid the decline in fuel demand due to the pandemic.
It then started the transformation of the Tabangao refinery from petroleum processing to a world class full import facility, re-investing at least P1 billion in the next few years.
With a capacity of 263 million liters, the Tabangao facility more than meets the demand not just in Metro Manila but also in Southern Luzon and Northern Visayas.
Meanwhile, Pilipinas Shell’s NMIF in Cagayan de Oro has a capacity of 90 million liters in finished petroleum products and continues to serve the needs of the rest of the Visayas and Mindanao
Since 2016, the NMIF has helped reduce costs and overall maritime risks by eliminating the need for short-range vessels to transport fuel from Tabangao to Mindanao.
With the Subic facility operational, Pilipinas Shell has strengthened its supply chain resilience since the company is better positioned to respond to disruptions brought about by the typhoon season.
“At Shell, we seek to further power progress in the Philippines by fueling economic growth through an efficient and reliable supply of world-class products,” Romero said.