Pilipinas Shell opens repurposed Tabangao facility

Pilipinas Shell Petroleum Corporation has opened its new import terminal in Tabangao, Batangas, the firm said in a disclosure to the Philippine Stock Exchange.

The company had repurposed its oil refinery in the Batangas barangay and inaugurated the Shell Import Facility Tabangao (SHIFT) on June 30.

To recall, in August 2020, the company announced it was permanently shutting down the refinery as it shifted its strategy from manufacturing to importation to sustain its business amid the economic impact of the COVID-19 pandemic.

With the import terminal, Pilipinas Shell said it will be able to meet fuel demand not just in Metro Manila, but also in Southern Luzon and Northern Visayas.

“From tough decisions come positive results. The transformation of our refinery into a world-class import facility demonstrates Shell’s commitment to provide sustainable energy to the Philippines despite the challenging conditions posed by the pandemic,” said Pilipinas Shell president and chief executive officer Cesar Romero.

“We are now better positioned, operationally and financially, to serve the country’s energy needs as the economy reopens with the lifting of restrictions,” Romero said.

The structural transformation of the Tabangao refinery also “bolstered Pilipinas Shell with a more balanced and competitive marketing portfolio, supported by the organization’s robust supply chain,” he said.

“It helped lead into a positive trajectory for Pilipinas Shell despite the pandemic, as we posted a net income of P1.0 billion for the first quarter of 2021; this figure was a strong rebound from our P5.5 billion loss in the same period last year,” he added.

SHIFT has a storage capacity of up to 263 million liters (ML) and has jetties that have loading arms, which make product transfer safer and faster, provide an easier and more ergonomic operation, give longer service life, and permit Emergency Release Action without any spillage of product and without pollution, according to Pilipinas Shell.

The company said the facility’s jetties are designed to receive products from various vessel sizes including Medium-range import vessels (MRs).

“MRs can carry around 30 million to 50 million liters of petroleum products like gasoline or diesel,” it said.

The Tabangao facility is also 100% powered by a combination of solar, geothermal, and hydro energies provided by Shell Energy Philippines (SEPH), a retail electricity supplier that is one of the Shell companies in the Philippines (SciP).

The solar farm onsite covers 5,220 solar panels and seven inverters which can generate up to 300 megawatts per hour. — BM, GMA News