November 27, 2020 at 08:20 pm
Alena Mae S. Flores
Pilipinas Shell Petroleum Corp., the country’s second largest oil company, said Friday it opened another import facility in Subic Bay to strengthen its supply chain in the northern parts of Luzon.
The company said in a statement the move would support 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,” said Pilipinas Shell president and chief executive Cesar Romero.
The Subic facility is Pilipinas Shell’s third medium range vessel-capable import terminal and can receive 54 million liters of finished products in one shipment.
This allows the company to maximize its efficiency and minimize transshipment costs.
It said the Subic facility completed a robust supply triangle that Pilipinas Shell created across the nation with the Tabangao refinery-turned-import terminal in Batangas and the North Mindanao Import Facility in Cagayan de Oro City in Mindanao.
Romero said the expanded fuel supply network underpinned the company’s thrust to expand its number of retail stations as it remained committed in the Philippines as a partner in nation-building
“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.
The Subic facility, strategically located to enhance access to Regions I, II, III and the Cordillera Administrative Region, is an addition to Pilipinas Shell’s network of terminals and complements the two import terminals.
Pilipinas Shell started the transformation of its Tabangao oil refinery into a world-class full import facility from petroleum, re-investing at least P1 billion in the next few years in this project.
The company said the Tabangao facility would meet the demand not just in Metro Manila but also in Southern Luzon and Northern Visayas with its 263-million liter capacity.
Pilipinas Shell’s NMIF in Cagayan de Oro continues to serve the needs of the rest of the Visayas and Mindanao.
The facility has a capacity of 90 million liters in finished petroleum products.
Pilipinas Shell said 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.
The company said that with the Subic facility operational, it strengthened its supply chain resilience as it became better positioned to respond to disruptions brought about by the typhoon season.