Shell warns of 'gas run outs' in coming weeks

MANILA, Philippines - Pilipinas Shell Petroleum Corp. yesterday warned of “massive gas run outs” in its retail stations in the coming weeks caused by the oil pipeline shutdown in Makati City.

In a statement, Shell said “run outs in gasoline stations are expected to continue for a number of weeks as there is a backlog of deliveries.”

Shell said the continuing shutdown of the pipeline in Makati City would post “logistical difficulties” in the delivery of oil and fuel products to its retail stations.

Shell cited traffic as among the factors that could delay the delivery of oil products to its retail stations, thus resulting in a shortage.

“A continued shutdown of the pipeline is unsustainable. We have always maintained that the pipeline is still the safest, most reliable and efficient mode of transportation for petroleum products,” said Roberto Kanapi, Shell vice president for communications.

Kanapi called for the immediate reopening of the Batangas-Manila (Batman) pipeline to ensure continuity of oil supply in the market.

The Batman pipeline is the largest commercial oil pipeline in the country, transporting crude and refined petroleum products from the refineries in Batangas to Metro Manila. 

The Batman pipeline primarily supplies more than 50 percent of the petroleum products for the Pandacan depot that supplies 50 percent of the country’s total demand for oil, including an estimated 1,800 retail stations for Regions 1-4 and 459 stations in Metro Manila.

The Pandacan depot also supplies 70 percent of the shipping industry’s needs nationwide, 90 percent of lubricant requirements nationwide, 75 percent of all aviation fuel needs nationwide, and 25 percent of the demand for chemicals nationwide.

The Batman pipeline is Metro Manila’s “energy lifeline” supplying critical industries like transport, construction, food manufacturing, rice and sugar mills, mining, power generation, among others.

Kanapi said Shell is coordinating efforts with the pipeline owner and operator, First Philippine Industrial Corp. (FPIC), the Department of Energy (DOE) and various government agencies to achieve the urgent resolution of the issue to ensure continued safe and reliable service to the public.