Pilipinas Shell plans to buildimport terminal in Visayas

Pilipinas Shell Petroleum Corp. (PSPC) announced plans to build another import terminal after it recently broke ground on its fourth facility in Mindanao.

During an online briefing after the company’s stockholders’ meeting last week, PSPC President Lorelie Quiambao-Osial hinted that the fifth import terminal would be built in the Visayas area.

“To be more competitive, we need to be in one major island outside of Luzon and Mindanao,” said Osial.

The oil company is currently constructing its fourth import terminal in Darong, Southern Mindanao. The 67-million-liter capacity import facility is expected to be operational by the third quarter of 2024.

The other three are the Shell Import Facility Tabangao (SHIFT) in Batangas with a 263-million-liter capacity; the North Mindanao Import Facility (NMIF) in Cagayan de Oro City with a 90-million-liter capacity; and the Subic Import Terminal, northwest of the National Capital Region, with a 54-million-liter capacity.

“We are building import terminals for us to be more competitive in the market that we are playing in. In the fuels [business], the bigger the vessel that you can import, the more competitive the prices will be,” said PSPC Vice President for Supply and Distribution Kit Arvin Bermudez.

The Darong import facility is a 50-50 joint venture owned by Northern Star Energy Corp. and the DMCI Construction and Equipment Resources Inc.

With the Darong import facility, PSPC has plans to establish more than 80 new Shell Mobility sites in Southern Mindanao by 2025. The Shell sites are designed to enhance customer experience, offer both fuel and non-fuel products, enable more forms of transportation, and lower carbon footprint through innovation.

“The Darong Import Facility will allow us to fulfill our commitment to support economic activities as the Philippines continues to recover from COVID-19. It strengthens our capacity to continue to deliver quality fuels to our customers, consistent with our organization growth plans,” said PSPC Vice President for Corporate Relations Serge Bernal.

Osial said PSPC would have five import terminals by 2025.

The oil firm will retain its yearly capital expenditure (capex) spending at P3 to P4 billion annually. Of the amount, 60 percent will be dedicated to the expansion of mobility footprint, and the remaining 40 percent will be utilized to further beef up its supply chain network.

“We are keeping in line with our 5-year strategy of spending P3 to P4 billion of capex program, but we are rearranging some of our priorities in terms of where to spend and where to invest. We are shifting to more company owned sites than dealer owned sites,” said PSPC Chief Finance Officer Rey Reynaldo Abilo.

Out of 43 new stations, Abilo said majority of these are company-owned sites. “In terms of yield and profitability, this yields higher profits to the company becauce of the full mobility offer it brings to the customers.”

Randolph del Valle, PSPC vice president for mobility, said around 40 to 60 mobility stations will be constructed this year. “We are building more company-owned sites, bigger footprint to ensure that we have the compete offer. We are not just a fuel station, but we are a mobility destination to offer various items beyond fuels.”

In 2021, PSPC reported a net income of P3.9 billion, a reversal of the previous year’s P16.18-billion loss. “In 2021, which was a very remarkable year, we took concrete steps towards recovery and growth in line with our reset and refocused strategy,” said Osial.