Shell shoots down oil depot transfer plan

Pilipinas Shell Petroleum Corp. is not keen on joining a bid to move a controversial oil depot to the Manila North Harbor. Edgar Chua, Shell country chairman, said the company does not see the need to relocate its oil warehouse as it has already scaled down its operations in Pandacan, Manila. The Pandacan oil depot is jointly operated by Shell, Petron Corp. and Chevron Philippines Inc. The facility supplies 1,800 retail stations in Metro Manila and outlying provinces, 70% of the shipping industry’s fuel requirements, 90% of lubricants nationwide and 75% of aviation fuel needs in the country. Despite the Pandacan depot’s crucial role, various civic groups have scored the facility for its security, health and environmental risks because of its proximity to residential areas and the Pasig River. Chua, however, said that moving out of Pandacan might instead entail additional cost for the oil firms that would have to be passed on to consumers through an increase in pump prices. (July 15, 2010)