Shell, Petron bag P3-B fuel supply contracts with PSALM

MANILA, Philippines -  Two major oil companies –Pilipinas Shell Petroleum Corp., and Petron Corp.- bagged P3 billion worth of fuel supply contracts with state-run Power Sector Assets and Liabilities Management Corp. (PSALM).

The contracts cover this year’s oil-based fuel requirements of independent power producer plants and barges being managed by the National Power Corp. (Napocor).

PSALM is an entity created under the Electric Power Industry Reform Act of 2001 which handles the finances of Napocor.

The resolution issued by PSALM’s Bids and Awards Committee on Fuel (BAC-Fuel) indicated that Petron submitted the lowest calculated responsive bid (LCRB) for the industrial fuel oil (IFO) requirements of the Iloilo-based Power Barge (PB) 101, 102 and 103, while Shell presented the LCRB for the Naga plant complex in Cebu.

For PSALM’s industrial diesel oil (IDO) requirements, Petron submitted the LCRB for PB 101, 102 and 103, Davao City-based PB 104, Malaya TPP, Naga power plant complex, Southern Philippines Power Corp. (SPPC) in Sarangani and Western Mindanao Power Corp. (WMPC) based in Zamboanga.

Petron offered a total of P1.13 billion for the supply and delivery of the aggregate 44,587-kiloliter (kL) IFO requisite of PB 101, 102 and 103.

Shell, on the other hand offered P1.89 billion to supply the 68,264-kL IFO needs of the Naga power plant complex.

Petron also offered a total of P490 million to supply and deliver the IDO requisites of Malaya TPP, Naga Power Plant Complex, SPPC, WMPC, and PB 101, 102, 103 and 104 totaling 15,192 kL.

All bids of Shell and Petron, which underwent the post-qualification process, fell within PSALM’s approved budget for the contract as stipulated in its 2011 corporate operating budget.

The bidding for the diesel oil requirement of the Batangas-based Ilijan natural gas combined cycle power plant failed since no bid was submitted on the scheduled date, while bids for the industrial fuel oil requirements of Malaya TPP are still in the post-qualification stage.