With the shutdown of its refining operations, Pilipinas Shell Petroleum Corporation is beefing up its retail portfolio with the addition of Subic facility as its import terminal.
The local subsidiary of the Anglo-Dutch energy giant has sealed a long-term lease arrangement with Philippine Coastal Storage and Pipeline Corporation (PCSPC) for the use of the Subic terminal as one of its medium-range vessel-capable petroleum importation hub – primarily to serve customers in Northern Luzon.
The company said the Subic terminal will reinforce supply access to its customers in Regions I, II and III as well as the Cordillera Administrative Region (CAR) – which was also deemed as the areas that appeared to have faster pace of recovery when it comes to fuel demand.
The Subic terminal will be in addition to its facility in Tabangao, Batangas that will be turned into a world-class import terminal; and then the North Mindanao Import Facility (NMIF) in Cagayan de Oro which will serve customers in Visayas and Mindanao.
According to Shell, the Subic facility “can receive 54 million liters of finished products in one shipment,” and this will allow the company “to maximize its efficiency and minimize its transshipment costs.”
“The Subic facility completes a robust supply triangle that Shell has created across the nation with its Tabangao refinery-turned-import terminal in Batangas and its NMIF in Cagayan de Oro City in Mindanao,” the oil firm reiterated.
Cesar G. Romero, president and CEO of Pilipinas Shell, indicated prospective rebound in the petroleum sector in the near-term; given the upward revision in the economic projections for the country – that after the 16.9-percent contraction in the gross domestic product (GDP) in the second quarter, that had been trimmed to 11.5-percent in the third quarter.
He noted their company shares the government optimism on economic recovery, therefore, Shell is prepping up on “bolstering supply ahead of Asia’s anticipated bounce-back in fuel demand.”
With the expansion of the company’s fuel supply network, Shell emphasized that this goes along with target “to grow its number of retail stations,” that in turn would support the country’s economic growth aspirations.
The company chief executive added, “with the Subic facility operational, Pilipinas Shell has strengthened its supply chain resilience since the company is better positioned to respond to disruptions brought about by the typhoon season.”