Pilipinas Shell gets P9 billion loan from BPI, Metrobank

MANILA, Philippines — Pilipinas Shell Petroleum Corp. is borrowing P9 billion from two local banks for its cash requirements.

Pilipinas Shell in a stock exchange filing said it secured a P9-billion five-year loan evenly split with the Bank of the Philippines Islands (BPI) and Metrobank following a competitive tender process.

This also renews an existing five-year loan with BPI maturing on March 8, 2023.

Pilipinas Shell said the loan would reduce the company’s exposure to short-term volatilities in the market as it benefits from the low interest rate for its cash requirements.

Pilipinas Shell president and CEO Lorelie Quiambao-Osial earlier said the group intends to open 40 to 60 mobility sites annually starting this year until 2025.

Pilipinas Shell currently has a network of about 1,100 stations nationwide.

Aside from continuing the expansion of its network of stations, Pilipinas Shell is also preparing for the development of its fifth medium range-capable import terminal.

Construction of its fourth medium range-capable import terminal in Davao commenced last year and is eyed to be operational by the third quarter of 2024.

The new import terminals will increase and strengthen the company’s supply chain across the country.

Liquefied natural gas (LNG), likewise, remains an area of interest for the group in the Philippines.

Shell Energy Philippines last year revived its planned LNG import terminal in Batangas City, which was first proposed in 2013.

The LNG project is being revived in line with the company’s pursuit of clean energy projects and also to utilize existing utilities of Pilipinas Shell.

The project will be developed within Pilipinas Shell’s Tabangao import terminal, formerly a refinery, with an estimated cost of P3.5 billion.

Early this year, Pilipinas Shell and Shell Energy Philippines also entered a tripartite memorandum of agreement with the Department of Energy to conduct a pilot study of electric vehicle charging stations supplied by renewable energy, such as solar.