Shell to expand market with Northern Star for Ilocos region

Published July 2, 2022, 11:05 AM

by Myrna M. Velasco

Major oil firm Pilipinas Shell Petroleum Corporation has tied up with Northern Star Energy Corp., a flourishing fuel solutions company in Northern Luzon, to expand its mobility stations and reinforce its market presence in the Ilocos Region as well as neighboring provinces.

Under the plan, Shell would “transform Northern Star’s existing sites in the area, into Shell-branded Mobility stations.” The partnership would add “no less than 100 sites in Pilipinas Shell’s nationwide portfolio throughout the expected life of the deal.”

Randy del Valle, vice president of Mobility for Pilipinas Shell, said “this partnership will allow us to reach more customers and communities in La Union, Ilocos Sur, Ilocos Norte, Abra, and Mountain Province, in line with our commitment to serve the growing and evolving energy needs of every motoring customer and pedestrians alike.”

Shell indicated its transforming mobility stations are not just designed as fuel sites, but they are also molded as ‘destination’ and are aimed at promoting “better customer journey experiences with an expanded range of products, full vehicle servicing, and even retail/lifestyle and food offerings targeted to each local market.”

Del Valle added that the firm’s partnership with Northern Star will gather the pace for Shell’s build-up of its retail network, which the company re-packaged as mobility stations.

“This investment is an important step in accelerating Pilipinas Shell’s growth ambition of 1,300 – 1,400 sites by 2025,” he stressed, adding that the North Luzon regional market covering La Union, Ilocos Sur, Ilocos Norte, Abra and Mountain Province had always been one of the largest transport areas in the country.

“The partnership is expected to significantly increase both fuel and non-fuel revenues for Pilipinas Shell. It also enables us to provide more employment opportunities for the local communities in these areas,” the oil firm executive enthused.

Pilipinas Shell had cast up to P20 billion worth of capital spending for the organic growth of its mobility stations within a span of five years.

On its new tie-up with Northern Star, Pilipinas Shell specified that both parties “will work together for the seamless integration of operational practices in alignment with Shell standards.”

Del Valle asserted their company “is looking forward to applying Northern Star’s strong operational excellence and expertise as demonstrated through speedy and consistent site growth and best practices.”