Oil crisis in Metro feared

**Monseratto** · July 24th, 2010 11:41 PM

THis is due to the fuel leak in the area around West Tower Condominium in Makati. There are some Shell Stations with no diesel or unleaded gasoline.

Metro Manila residents, still smarting from water shortage, are in for another crisis – possible disruptions in oil supply starting this weekend following the closure of the pipeline used by Shell and Chevron to bring petroleum products from Batangas to oil depots in Pandacan, Manila.

To avert what officials call a “worst-case scenario,” the Department of Energy (DoE) called for an emergency meeting with concerned stakeholders and sought the help of other oil companies on the possibility of augmenting supply, while Shell struggles to fill up its pumps due to shift in ‘‘product transporting mode,’’ with the sudden closure of the oil pipeline operated by the First Philippine Industrial Corporation (FPIC) following the discovery of an oil leak in the basement of the West Tower condominium in Makati City.

The FPIC closed its pipeline operations after some petroleumlike substances accumulated in the West Tower basement, although the actual cause of the problem is still being established.

The FPIC said there was really no leak or seepage from their pipeline, but just the same the company decided to cease operations for safety purposes.

“While we are concerned with the oil supply situation, we cannot also compromise safety, especially that of residents of the affected West Tower condominium. We are earnestly hoping that there is an early resolution that we can explore to address the situation,” DoE director Zenaida Y. Monsada said.

Pilipinas Shell Vice President for Communications Roberto S. Kanapi disclosed that supply at the firm’s pumps, which may involve from 90 to 100 stations in Metro Manila and neighboring areas, have been wobbling starting midnight Friday due to delivery problems – from pipeline to use of truck and barges to deliver fuel products.

As of Saturday morning, Kanapi said “the situation has worsened” and was compounded by the fact that the re-opening of the oil pipeline is still undetermined up to this point. The other oil firm using the FPIC pipeline is Chevron (the former Caltex) Philippines, Inc.

Both oil companies and energy officials clarified that the problem is not necessarily supply, but delivery of the products. Delays, nevertheless, pose a crisis situation because they could lead to product shortage at the pumps.

The situation that the industry faces right now is likened to a “dry-run” when the Pandacan depots are closed – that products will be transported by land or smaller barges all the way from the refinery and handling facilities in Batangas.

Using trucks and barges may entail higher delivery costs that will redound to more expensive per-liter cost at the pumps.

http://www.mb.com.ph/articles/268652...s-metro-feared