Pilipinas Shell Petroleum Corp. is aiming to open its $133 million import terminal in Northern Mindanao by the end of next year.
Shell said the terminal would be able to serve existing businesses in Mindanao and the wide array of industries that are likely to boom in the region with government making headway in the peace process.
In March, the government and the Moro Islamic Liberation Front (MILF), the country’s largest Muslim rebel group, signed a historic peace pact that is seen to end decades-old conflict in the region.
“With the peace process almost completed, we expect more investments from various industries and those will need fuel supply,” said Shell VP for Communications Ramon del Rosario.
He said the import terminal can serve the huge Mindanao market and the requirements of Visayas as well.
“We receive fuel imports in Luzon and transport them to Visayas and Mindanao so with the terminal, this will cut logistics costs,” he said.
The Mindanao terminal will be able to store main fuels such as gas, diesel and jet fuel.
Shell has oil depots around the country and has another terminal in Batangas.
“Batangas is the biggest (terminal. We also have depots across the country – some of which are joint ventures, some are 100% owned,” Del Rosario said.
For the Batangas terminal, Shell has also decided to upgrade its 110,000 barrel-per-day refinery in Tabangao, Batangas said Energy Secretary Carlos Jericho Petilla.
The decision to upgrade the refinery comes on the back of the Department of Environment and Natural Resources’ 2010 directive for higher vehicle emission standards by Jan. 1, 2016.