Shell eyes alternative depot sites

Philippines oil giant Pilipinas Shell Petroleum Corp. has promised to move its storage facilities with little impact on consumers, following a closure order issued by the city of Manila. Samuel G. de Guzman, Shell vice-president for retail, said they have considered alternative sites so as not to disrupt fuel supply in retail stations as far away as South Cotabato, Sultan Kudarat and Sarangani provinces. But he declined to name the locations and the investments needed to build a new oil depot. De Guzman noted that if the new storage facility is not ready by December, Shell has contingency plans to avert fuel shortage in the SOCCSKSARGEN growth area, which has a monthly requirement of 18 million liters. The Comprehensive Zoning Ordinance 2001-2010 reclassified the Bula area as a commercial, from an industrial, area. The group said oil players would have to get fuel supply from as far as Davao City, which is 160 kilometers from this city, for three to five years if the existing depots are shut down. (July 11, 2008)