Shell assures steady supply from refineries

MANILA, Philippines — Amid the phaseout of Russian fossil fuels, Pilipinas Shell Petroleum Corp. (PSPC) assures it has sufficient supply as its refinery sources get their crude oil from other producers.

PSPC  leverages on its relationship and integration with the Shell Group network, which is its unique strength among its competitors in the industry.

“The Shell Group’s global trading and supply team (for the East, which includes the Philippines, this is situated in Singapore), sources a reliable supply of high-quality fuels from various refineries. The refineries where our finished products are sourced from do not use Russian crude oil,” PSPC said in an email reply to The STAR.

“On a global level, Shell, as one of the biggest players in the industry, maintains a strong, reliable supply chain network – and in varying degrees, with secured long term supplier agreements,” it said.

In a report by BBC, Shell said it would continue to phase out Russian fossil fuels as Gazprom would start cutting gas supplies to the gas giant in Germany for refusing to pay in rubles.

On Monday, European Union leaders agreed to cut by 90 percent its oil imports from Russia  by yearend.

The EU’s Russian oil ban will affect all seaborne oil imports, which is around two-thirds of the total, and will temporarily not cover the pipeline oil.

Once the bloc fully adopts the agreement, the import ban on crude will be phased in over six months and on refined products over eight months.

The EU-wide ban was considered as the bloc’s toughest sanction yet on Russia since the invasion of Ukraine in February, Reuters said.

In a tweet, European Council President Charles Michel said the ban would  cut “a huge source of financing for its war machine” and represents a “maximum pressure on Russia to end the war.”

Currently, the EU imports 27 percent of its oil requirements and 40 percent of its gas needs from Russia.

After EU’s announcement, global oil prices reached new highs on Tuesday, the impact of which could be felt in local pump prices next week.

The Department of Energy (DOE) has been closely monitoring global oil supply and price movements, in coordination with downstream oil industry players.

The agency  maintained that the country remains to have sufficient supply, but domestic prices continue to reflect upward global market movements.