A petroleum company Pilipinas Shell opened a new facility in Subic in October to serve Northern Luzon market, a move that completes Shell’s “supply triangle” across the nation along with import facilities in Batangas and Cadayan de Oro.
The new Subic import terminal is capable to receive 54 million liters of finished products in one shipment allowing the company to maximize efficiency and reducing transshipment costs.
Pilipinas Shell is committed to increasing its retail stations in the country and opening another facility will improve the company’s supply chain resiliency to respond better to disruptions such as typhoon.
“At Shell, we seek to further power progress in the Philippines by fueling economic growth through an efficient and reliable supply of world-class products,” says Pilipinas Shell President and CEO Cesar Romero.
The Subic terminal will enhance access to Regions I, II, III, and the Cordillera Administrative Region.
“We share Government’s optimism and remain committed as the country’s partner in nation-building by leveraging our global expertise to strengthen our presence in the Philippines and bolstering supply ahead of Asia’s anticipated bounce-back in fuel demand,” says Pilipinas Shell President and CEO Cesar Romero.
“The company remains committed in the Philippines as a partner in nation-building,” he adds.
Pilipinas Shell posted P13.9 billion net loss following one-off charges at P7.5 billion associated with the conversion of Tabangao facility into a world-class import facility in August. Without the one-off charges, the net loss would have been P6.5 billion.
However, the company has managed to save P2.5 billion in Q3 amid covid-19, exceeding its cash conversion target of P2 billion by yearend.
Meanwhile, the facility in Cagayan de Oro continues to serve the needs of the rest of the Visayas and Mindanao with a capacity of 90 million liters in finished petroleum products. Since 2016, the North Mindanao Import Facility has helped reduce costs and overall maritime risks by eliminating the need for short-range vessels to transport fuel from Tabangao to Mindanao.