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Shell: Fuel supply shortage to hit areas outside NCR


The extended closure of First Philippine Industrial Corp.’s pipeline due to a gas leak may start making an impact on fuel supply to areas outside the National Capital Region (NCR) as early as next week, an oil firm official warned Friday. Shell Philippines spokesman Roberto Kanapi said they cannot sustain their emergency operations amid a prolonged pipeline shutdown because the tankers and facilities they are using to supply Metro Manila with fuel are intended for the use of other areas. “Now it's beginning to impact on us because of the extended closure of the pipeline.... Even other areas (outside Metro Manila) can be impacted by next week if these resources are not brought back for use," Kanapi said in an interview on dwIZ radio. “We can already foresee we will have issues if this is not resolved very soon. We are very concerned about the integrity of the pipeline," he added. He said their business continuity plan for the pipeline closure was only for “four to five" days. The pipeline has been closed for more than a week. Kanapi noted the Makati City government has not yet allowed the reopening of the pipeline, which transports fuel from the refineries of Shell and Chevron in Batangas to depots in Manila. He noted that the trucks they are using to bring fuel from Batangas to Manila are usually used to deliver fuel to areas outside the NCR. At best, the tankers would have served up to 50 percent of the capacity of the pipeline, he added. The portion of FPIC’s pipeline in Makati City was ordered closed after it was found to contain holes linked to recent gas leaks. Fuel stations closed Kanapi said at least 50 percent of Shell’s 180 stations in Metro Manila have been experiencing product run-outs. As of Thursday, he said at least 30 of the stations have shut down. A report by dzBB’s Allan Gatus Friday said even Shell’s gas station at Quirino Avenue near its Pandacan depot was experiencing supply shortages in V-Power products. The dzBB report quoted attendants at the Quirino Avenue station as saying they had been experiencing the shortage for at least three days. “It’s a serious issue. My only plea, sana buksan na ang pipeline (we hope the pipeline is allowed to resume operations)," Kanapi said. He said additional safeguards such as monitoring wells can be put in place so the leaks wherever they are will be spotted. Kanapi said Shell had been using the FPIC pipeline since 1969. Meanwhile, Kanapi said they are not too keen on lodging a suit against FPIC for the leak, at least for now. “(Our) lawyers will deal with this after the event. What we’re trying to do now is solve this issue," he said. Run-outs for weeks A press release on Shell’s website said run-outs in gasoline stations and customers are expected to continue for a number of weeks as there is a backlog of deliveries. “In addition, significant logistical difficulties, including road traffic, river tide restrictions, jetty congestion issues will continue to pose challenges in ensuring safe and reliable supply of products to the market," it said. According to Shell, the Batangas-Manila (Bat-Man) pipeline is the largest commercial oil pipeline in the country transporting crude and refined petroleum products from Batangas to Metro Manila. Shell said the Bat-Man pipeline supplies more than 50 percent of the petroleum products for Pandacan, the largest and most important depot in the country, supplying:

  • 50% of the country’s total demand for fuels, including around 1,800 retail stations for Regions 1-4 and 459 stations in Metro Manila;
  • 70% of the shipping industry’s needs nationwide;
  • 90% of lubricant requirements nationwide;
  • 75% of all aviation fuel needs nationwide; and
  • 25% of the demand for chemicals nationwide.
It said the Bat-Man pipeline is Metro Manila’s “energy lifeline" supplying critical industries such as transport, construction, food manufacturing, rice and sugar mills, mining, power generation, among others. — LBG/RSJ, GMANews.TV
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