Shell Batangas First Class Import Terminal

Pilipinas Shell Batangas Refinery: A first-class import terminal in the country

Pilipinas Shell Petroleum Corporation (PSPC) inaugurated its world-class import terminal in Tabangao, Batangas, last June 30, 2021, enhancing its capacity to meet fuel demand in Southern Luzon and Northern Visayas, according to Shell.

Shell Companies in the Philippines country chair and Pilipinas Shell Petroleum Corp. president and CEO Lorelie Quiambao-Osial said the group intends to open up to 60 mobility sites per year until 2025, reported PhilStar.

However, the expansion plans met hurdles after claims of violating health protocols. But more woes faced the largest petroleum company in the Philippines.

Shell fully paid P3.49-billion in dues from raw material imports, under protest, to retain its Customs accreditation for now.

Customs Assistant Commissioner Vincent Philip Maronilla said Pilipinas Shell’s settlement on the second tranche was worth P1.72 billion—of back taxes incurred at the Port of Batangas, according to Inquirer.

Dubbed a “world-class, full import terminal,” the Tabangao oil refinery, constructed in 1960, has been a vital refinery center for the last 100 years of operating in the Philippines.

Addressing the oil supply imbalance

Shell Philippines President and CEO Cesar G. Romero said the company “has the technical capability and flexibility to manage and adapt to disruptive conditions,” according to Manila Bulletin.

Due to the impact of the Covid-19 pandemic on the global, regional, and local economies, and the oil supply-demand imbalance in the region, it is no longer viable for us to run the refinery,” Romero added.

Pilipinas Shell is a subsidiary of Royal Dutch Shell, which suffered a P5.5 billion net loss in the first quarter of this year because of the pandemic crisis.

The shift in supply chain strategy from manufacturing to the entire import terminal is a move that will further strengthen Pilipinas Shell’s financial ability, despite the changes happening in the global refining industry.

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