Shell to build 4th Philippines import terminal

MANILA, Philippines — Pilipinas Shell Petroleum Corp. (PSPC) has started constructing its fourth Philippine import facility  in southern Mindanao to boost supply and stability in the region.

The Darong Import Facility, which has a rated capacity of 67 million liters of petroleum products, will be the third largest import facility in the PSPC network of terminals.

During the groundbreaking ceremony yesterday, PSPC vice president for corporate relations Serge Bernal said southern Mindanao is a strategic growth location for the company.

“The Darong Import Facility will allow us to fulfill our commitment to support economic activities as the Philippines continues to recover from COVID-19. It strengthens our capacity to continue to deliver quality fuels to our customers, consistent with our organization growth plans,” he said.

With new terminal targeted to start full operations by the third quarter of 2024, PSPC has plans to establish more than 80 new Shell Mobility sites in Southern Mindanao by 2025.

The Shell sites are designed to enhance customer experience, offer both fuel and non-fuel products, enable more forms of transportation, and lower carbon footprint through innovation.

PSPC said the Darong Import Facility would also help and promote business continuity and stability in the area, providing resources for mobility during incidents of storms, floods, and other natural calamities.

With this project, PSPC vice president for supply and distribution Kit Bermudez said the company hopes to energize the community and create opportunities for growth.

“Mindanao is one of the key priority growth areas of Pilipinas. We are witness to how Mindanao is growing and it is just apt that we provide them with the fuel storage for their growth,” Bermudez said.

The new facility is a 50-50 joint venture owned by energy company Northern Star Energy Corp. and the DMCI Construction and Equipment Resources Inc. (DMC-CERI), the leading engineering-based integrated construction company, which will build the facility.

Meanwhile, the Sta. Cruz Storage Corp. (SCSC) was tapped to design, construct, and operate the facility with an exclusive-use arrangement for a term contract with an option to extend.

DMC CERI chairman Isidro Consunji said the   pandemic has shown the vulnerability of the country’s supply chains and the need for more resilient infrastructure.

He said that with or without a pandemic, the Philippines needs adequate, continuous and affordable fuel supply to sustain the economy, address poverty and improve the quality of life of its citizenry.

“This (Darong Import Terminal) can bring our country closer to achieving all that,” Consunji said.

Once the new terminal is completed, DMC CERI president Tulsidas said it would be one of the biggest and most modern of its kind in Mindanao.

PSPC’s other terminals are the Shell Import Facility Tabangao (SHIFT) in Batangas with a 263-million-liter capacity, the North Mindanao Import Facility (NMIF) in Cagayan de Oro City with a 90-million-liter capacity, and the Subic Import Terminal, northwest of the National Capital Region, with a 54-million-liter capacity.