Traders back independent study on Pandacan oil depot

MANILA, Philippines - Local business groups are backing the conduct of an independent risk assessment at the Pandacan oil depot.

Jesus Varela, an official of the Philippine Chamber of Commerce and Industry (PCCI), said they would support plans to form a group that will draft the terms of reference (TOR) for the hiring of the risk assessor.

“We are agreeable to that. That is a welcome move. This needs the participation of everyone. All sectors should take part to make it more transparent,” he said.

He said tapping an international expert will resolve the alleged environmental concerns on the Pandacan facility by some sectors.

“I don’t think there will be a problem on that. It will be good to let an expert do that. This will allay the fears of the people,” he said.

Varela, however, believes the eventual phase-out of the Pandacan oil depot will materialize.

“Personally, I think in 10 years, the depot will be eventually be phased out because economics will dictate and market forces will dictate,” he said.

The Department of Energy (DOE) echoed PCCI’s statement, saying this initiative will once and for all clear things up on both the oppositors and the oil firms.

“It’s good that there is the involvement of the stakeholders so that they will have peace of mind,” DOE director Zenaida Monsada said.

According to Monsada, a similar risk assessment study on the Pandacan facility was also done a few years back.

She said the result of the study was used as basis for the scaledown of the operations of the oil firms. The depot is occupied by the big three oil companies – Petron, Shell and Chevron.

“That’s why there is no longer an LPG facility there. That was one of the recommendations of the previous study,” she said.

The DOE official said the result of another study by an independent third party assessor could also help in gauging the pollution and safety situation at the Pandacan oil warehouse.

Monsada, however, said the previous study did not involve other stakeholders such as opposing groups like environmentalists and the Catholic Church.

She also stressed that the Energy Department is very much concerned over the fate of the Pandacan depot because of its impact to the security of oil supply and affordability of price.

Shell country chairman Edgar Chua said they are trying to resolve two issues.

“There are two separate issues here. First of all the first issue is the claim that we have to relocate because we are posing safety hazards and we are polluting – which we are trying to settle. And if indeed we are a safety concern and polluting – then definitely we should relocate. We’re trying to settle that because as we were saying that is what the independent third party assessor is going to do. If, for example, even if the finding says we are safe and are not polluting, the future of Pandacan will be determined by the economic and market development. We see that the growth of the areas north and south of Manila will naturally result in changes in terms of the supply patterns,” he said.

The three oil firms assured that they, along with the other stakeholders, would hire the best risk assessor to ensure its competence and credibility.

“We will ask all stakeholders including the Church, government, business and Manila City Hall officials-from both sides of the debate to participate in the selection process,” they said.

Chua said the results of the assessment would definitely be honored by the oil firms.

“If the assessment showed that we are not compliant with any environmental rules, we will definitely do something about it,” the Shell official said.