Pipeline closure threatens oil product supply in Manila

A spokesperson for the Philippine government dismissed the possibility of an oil supply shortage following the Supreme Court’s order to stop the operations of First Philippine Industrial Corp.’s (FPIC) pipeline, which is being blamed for a gas leak. She said measures are in place to address potential oil supply disruption, including rotating product deliveries at retail outlets. The statement was made despite spot shortages at several retail outlets of both Pilipinas Shell and Chevron Philippines (Caltex). Both companies use the pipeline to transport products from Shell’s refinery and Chevron’s terminal in Batangas, south of Manila, to the Pandacan depot, a key supply point for three of the country’s major oil companies. (November 21, 2010)