Gas company seeks Ombuds’ help to recall rival’s permit

CEBU, Philippines - A local gas company is seeking the assistance of the Office of the Ombudsman-Visayas to direct the mayor of the City of Naga, Cebu to withdraw the alleged “illegal” conditional business permit it issued to Malaysian Petronas Liquefied Petroleum Gas Terminal.

The request for assistance of Pryce Gas Inc. stemmed from the ruling of the Bureau of Fire Protection national headquarters that the Petronas LPG facility, which has a capacity of over 4.5 million liters, has violated the safety distance provided by the Implementing Rules and Regulations of the Fire Code of the Philippines.

Pryce Gas alleged that Mayor Valdemar Chiong has violated the Fire Code of the Philippines for issuing a “conditional” business permit to Petronas.

It cited Section 5 (g), second paragraph of the Code which provides that; “no occupancy permit, business permit to operate shall be issued without securing a Fire Safety Inspection Certificate from the Chief, BFP or his/duly authorized representative.”

While it claimed to welcome competition, Pryce Gas said that allowing the illegal operation of Petronas LPG Terminal in the City of Naga does not provide an even playing field.

In its request to the anti-graft office Tuesday, Pryce Gas claimed to be “a proudly Filipino Corporation and as a responsible player in the petroleum/gases industry, is placed in a very disadvantageous position when it complies with legal requirements most especially those mandated under the Fire Code of the Philippines and incur much higher costs while other players such as Petronas, which is a multinational company, simply ignore these requirements.”

In a ruling dated July 15, 2014, the BFP national headquarters said that the facility of Petronas in Barangay Langtad has to follow the safety distance requirements provided for under the Fire Code of the Philippines and its implementing rules for its aboveground spherical tanks which has a total capacity of over 4.5 million liters.

It said that the minimum safety distance set forth under Table 26 of the IRR of RA 9514 specifically on the distance of LPG container with respect to building or line of adjoining property that can be built upon cannot be reduced by mere submission of fire safety analysis.

It said that the argument of Petronas that the safety distance requirements provided under Table 26 of the IRR of RA 9514 does not apply to bulk LPG plants is absurd.

Reversing the BFP-7 ruling, the BFP national headquarters further said that, “Table 26 does not apply to bulk plant is an absurdity, because while the lesser container has to observe the minimum setback distance, the bulk container that contains more hazardous substance is not required or is allowed to reduce the set minimum set back distance.”

Pryce Gases Inc. filed a case in September 2013 against Petronas for violation of the Fire Code of the Philippines, because the huge LPG storage tanks are located very close to adjoining properties.

It alleged that the Petronas facility failed to follow the 122 meter safety distance required by law for LPG tanks with capacity of over 378,000 liters.

A November 26, 2013 Inspection Report of BFP-7 signed by regional director Ma. Luisa Hadjula had indicated that the Petronas tanks are 65.5 meters away from adjoining properties.

Hadjula, however, justified the non-compliance saying that a fire safety analysis on the plant indicates that it is not a fire hazard.

The Petronas facility was initially issued a fire safety inspection certificate but it expired on December 31, 2013 and this hasn’t been renewed to date. (FREEMAN)