Chevron renews lease to four key fuel terminals in Philippines
Chevron Philippines Inc. (CPI) has renewed its lease agreements with Batangas Land Company Inc. (BLCI) for four key fuel terminals in the Philippines.
Batangas Land Company is a government-owned and controlled corporation in the Philippines involved in strategic infrastructure projects. It operates as a subsidiary of the National Development Company (NDC), which serves as the government’s primary investment arm.
The lease agreement covers properties in San Pascual, Batangas; Lapu-Lapu, Cebu; San Fernando, La Union; and, and Sasa, Davao City, which serve as critical infrastructure for Chevron’s nationwide fuel distribution in the Philippines.
Signed on 2 April 2025 at the Makati Shangri-La Hotel, the deal concludes two years of negotiations between Chevron Philippines and Batangas Land that began with a memorandum of understanding (MoU) in May 2023. The 2023 MoU signified both parties’ intent to renew the lease for the four terminal properties.
The original lease agreement between Chevron Philippines Inc. (formerly Caltex Philippines) and BLCI was signed in 1975. This contract covered an initial 25-year period and specified rental rates for the subsequent 25 years. This new agreement extends the lease for another 25 years, from October 2025 to September 2050, ensuring continued operation of Chevron’s critical fuel distribution infrastructure across the Philippines.
Caltex Philippines Inc. became Chevron Philippines Inc. in 2001 following the merger of Chevron Corporation and Texaco Inc. As a result of this merger, Caltex Philippines was rebranded as Chevron Philippines Inc., aligning with the global corporate identity of the newly formed entity.
In 2003, the company closed its 70,000 barrel-per-day refinery in San Pascual, Batangas, the country’s first oil refinery which was inaugurated in 1954. The decision was part of a strategic shift to transform the facility into a finished product import terminal. The converted terminal, with a storage capacity of approximately 2.7 million barrels, became operational in the fourth quarter of 2003.
“These four terminals that we are leasing from BLC in Batangas, Cebu, Sasa, and Poro serve as the backbone of our operations,” said Billy Liu, CPI general manager and country chairman. “This seal of renewed partnership enables CPI to continue serving our customers and ultimately providing for the growing energy needs of the country.”
Yu Lee Toh, Chevron’s vice president for Asia Pacific Sales, noted the lease renewal lays the foundation for further investments in the country. “This lease renewal not only solidifies Chevron’s presence in the Philippines, but it also provides a solid foundation that allows Chevron to confidently invest in our growth and expansion,” Toh said.
Government leaders, including representatives from the Department of Trade and Industry (DTI), Department of Energy, National Development Company, and the U.S. Embassy in the Philippines, attended the signing ceremony.
Chevron’s network in the Philippines spans more than 600 service stations, terminals, and supply points. The renewed agreement supports the company’s efforts to maintain safe, reliable operations while promoting energy security.
