‘Closure of depots to trigger energy crisis’

Oil companies have warned that forcible removal of the oil terminals in Pandacan, Manila would sever the city’s "energy lifeline" and precipitate an acute yet artificial fuel crisis that would have far-reaching adverse effects, not only on trade and commerce in the metropolis but also on the national economy as a whole.

"The closure of the Pandacan terminal will have a catastrophic effect on our economy, trade, livelihood and the nation’s life in general, bringing about devastating consequences far worse than the 1974 oil crisis, Petron Corp. said in a position paper.

The firm said a fuel shortage would certainly take place since there are limited alternative supply points in case the Pandacan depots are dismantled.

Shell spokesman Bobby Kanapi said the supply of petroleum to Metro Manila will be cut by 50 percent since the pipeline for Shell and Caltex will have to be transported by tank trucks from Batangas. On the other hand, Petron’s supply will have to be delivered by barges from its refinery in Bataan.

Oil firms have proposed amendments to Manila’s Ordinance 8027, which converts the Pandacan site from an industrial area to a commercial zone.

The firms said the depot may be forced to shut down if the ordinance is not amended after the memorandum of understanding signed between Manila Mayor Lito Atienza and oil executives expires on April 30.

Manila initially pushed for the immediate phase-out of the depot. Shell’s Marian Catedral said they have decommissioned 50 percent of the tanks and provided an additional safety buffer in compliance with the MOU.

The oil firms said the closure of the depot might have a negative impact on the 1,700 gas stations in Metro Manila and nearby areas. Petron cited a number of negative factors that could aggravate the problem, including tankage limitation, lack of loading facilities, limited tank trucks and longer distances to travel.

Possible effects may include the inevitable increase in pump prices as a result of additional hauling costs and other penalties that include the slowdown in refinery processes and the worsening of traffic congestion on the North and South Expressways because of the additional trucks. – With Nikko Dizon