Pilipinas Shell Petroleum Corp. on Wednesday inaugurated its world-class import terminal in Tabangao, Batangas, enhancing its capacity to meet fuel demand not just in Metro Manila but also in Southern Luzon and Northern Visayas.
Pilipinas Shell decided last year to convert its 110,000-barrel-per-day refinery into an import terminal on economic reasons brought about by the COVID-19 pandemic.
“From tough decisions come positive results. The transformation of our refinery into a world-class import facility demonstrates Shell’s commitment to provide sustainable energy to the Philippines despite the challenging conditions posed by the pandemic. We are now better positioned, operationally and financially, to serve the country’s energy needs as the economy reopens with the lifting of restrictions,” said Pilipinas Shell president and chief executive Cesar Romero.
The Shell Import Facility in Tabangao also known as SHIFT marks two major pivots in Pilipinas Shell’s more-than-a-century history in the Philippines. These are the transformation of the refinery into a world class terminal and the shift in its approach to a world coping with COVID-19 from effective, real-time response to recovery, according to the company.
Romero said the structural transformation of the Tabangao refinery also “bolstered Pilipinas Shell with a more balanced and competitive marketing portfolio, supported by the organization’s robust supply chain.”
“It helped lead into a positive trajectory for Pilipinas Shell despite the pandemic, as we posted a net income of P1 billion for the first quarter of 2021; this figure was a strong rebound from our P5.5-billion loss in the same period last year,” he said.
Energy Secretary Alfonso, in his message, spoke of how the energy company turned a challenge into strength.
“In May 2020, I was informed of the Tabangao shutdown which later led to its permanent shutdown in August. Despite this, Pilipinas Shell proved its resilience in its quick decision to transform the refinery into a world-class import terminal. A business call that would ensure continued fuel supply while enhancing the revenues and supply performances,” Cusi said.
Cusi assured the Department of Energy would continue to support Pilipinas Shell. “You may have lost the refinery, but you continue to give back to the Filipino people. Rest assured, DOE will remain supportive of Pilipinas Shell’s current and future endeavors which will bring our country closer to attaining energy security, independence, and sustainability,” the energy chief said.
Trade Secretary Ramon Lopez acknowledged the contribution that the SHIFT transformation would have to the national development.
“I laud your initiative of transforming the former Tabangao refinery into a world-class full import terminal, as well as shifting the terminal into using renewable energy. This is also in line with the recent call made by President Rodrigo Roa Duterte to the private sector to harness the potential of sustainable and renewable energy to drive the growth of our economy,” Lopez said.
Kit Bermudez, incoming Pilipinas Shell vice president for trading and supply, said the state-of-the-art facilities of the Tabangao terminal aim to build a more resilient supply chain with a robust logistics setup (MR capable jetty and sufficient storage capacity) and ready to meet future growth requirements of the market.
The terminal has a storage capacity of up to 263 million liters and boasts of jetties that have loading arms, which make product transfer safer and faster, provide a more ergonomic operation, give longer service life,and permit Emergency Release Action without any spillage of product and without pollution.
The jetties are designed to receive products from various vessel sizes including medium-range import vessels. MRs can carry 30 million to 50 million liters of petroleum products like gasoline or diesel.
“Industries are gradually overcoming the challenges brought on by the pandemic, and positioning themselves not just for recovery, but growth. We are here to support them at this critical time, just as we have for over 107 years of operation in the Philippines. The Shell Import Facility Tabangao manifests our commitment to keep evolving our business so that we can continue powering progress for the Filipino,” said Romero.
The Tabangao facility is also fully-powered by a combination of solar, geothermal and hydro energies provided by Shell Energy Philippines, a retail electricity supplier which is registered under the Shell companies in the Philippines.
The solar farm onsite covers 5,220 solar panels and seven inverters which can generate up to 300 megawatt-hours.