PH Shell to completely vacate Pandacan oil depot by November
MANILA, Philippines – Pilipinas Shell will be completely out of the Pandacan depot in Manila by November 2015, a company executive said on Monday, August 17.
“We will complete the removal of tanks by November this year. The dismantling started last month,” said Shell country chairman Edgar Chua after the site visit of Manila Mayor Joseph Ejercito Estrada.
Chua said the company has 14 tanks inside the facility.
Shell had appealed the decision of the Supreme Court (SC) for Shell, Petron Corporation, and Caltex Philippines to vacate the facility. (READ: Shell to review options after SC ruling on Pandacan depot transfer)
The SC order is final. (SC orders transfer of Pandacan oil depot)
Shell's parent firm was “disappointed” over the news, Chua said.
“To start with, the facility is not unsafe. If it was unsafe, we would be the first one to close it down. But we should not dwell on it anymore," Chua said.
He also said: "Hopefully, this won’t happen again. This does not define the relationship with the government."
The company has no other recourse but to source its fuel products from its Pilipinas Shell Batangas facility, a move that will result in higher distribution cost.
Chua said the firm's cost will be affected because it will have to factor in the transport of supplies from Batangas and the truck ban which is in effect in every city between the facility and Manila. (READ: Batangas gov't cannot tax Shell refinery – Supreme Court)
"But when you talk about pricing, this will all depend on competition,” Chua said.
The closure of its oil depot in Pandacan will also result in job losses.
“We will try to absorb as many [workers] as we can. We are still finalizing the details,” added Chua.
Shell has about 1,000 service stations nationwide. – Rappler.com