PNOC to invest in storage facility for government fuel importation

Published January 25, 2019, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2019/01/25/pnoc-to-invest-in-storage-facility-for-government-fuel-importation/

State-run Philippine National Oil Company (PNOC) is eyeing to invest in an oil storage facility that will underpin the planned petroleum products’ importation of the government.

This was disclosed to the media by Energy Secretary and PNOC Board Chairman Alfonso G. Cusi, although he qualified that investment plans are still at pencil-pushing stage.

“PNOC mother is even looking at investing in the storage facility,” he emphasized, albeit he qualified that project blueprints are being re-assessed as to what capacity the oil terminal should have – if it will be designed according to the 15 and 30 days inventory requirements set for industry players or if there is a need for higher volume given that such is being aligned as a strategic reserve for the country.

Cusi stressed “we want PNOC to participate in the supply chain (of the oil industry) and of course, we’re also addressing the reserve requirement of the country.”

He indicated that the long-delayed diesel importation plan of the government will be pursued still, but part of concretizing the plans, shall also be addressing the logistics component.

The energy chief similarly noted that beyond the physical infrastructure that will support the oil importation plan, the government will likewise need to face up with other hurdles – such as government procurement processes and other layers of bureaucratic paper works relating to the venture.

“There are rules on procurement that we have to follow… and on the supplier, we want to make sure the supplier we are dealing with is the correct one that would be able to deliver,” he said.

It has to be recalled that in the diesel importation plan cast since July last year, it was the state-run subsidiary Philippine National Oil Company-Exploration Corporation (PNOC-EC) that should have been taking the front line on sourcing the targeted fuel volumes from offshore.

Nevertheless, Cusi indicated that in the process of concreting such plan,” there are a lot of attention-grabbers, timeline-grabbers; but that’s part of a democratic process.”

The budget set previously by the State for diesel importation had been at P2.0 billion to P3.0 billion – but aside from bringing the product to Philippine shores, the company will similarly need to address product handling as well as distribution network so the commodity could be brought to the end-users.