Metro Pacific Investments Corporation (MPIC) and partner Keppel Infrastructure Trust (KIT) are set to acquire Philippine Coastal Storage and Pipeline Corporation (PCSPC), the largest petroleum products import terminal in the country.
In a regulatory filing on Wednesday, December 9, MPIC said it will initially hold a 20% stake in Philippine Tank Storage International Holdings, the parent of PCSPC, for $67 million (P3.2 billion).
MPIC and KIT are discussing giving MPIC an option to increase its interest in PCSPC up to 50%.
PCSPC is the largest independent petroleum storage facility in the Philippines with a storage capacity of over 6 million barrels, when it completes an expansion in 2021.
The 150-hectare facility at the Subic Bay Freeport Zone has 86 storage tanks, 2 piers, and pipeline infrastructure connecting the entire facility.
“With PCSPC accounting for 36% of the total import terminal storage requirements of the Philippines, MPIC sees this facility as vital energy infrastructure for the country,” said MPIC chairman Manny Pangilinan.
Matthew Pollard, chief executive officer of Keppel Infrastructure Fund Management – trustee manager of KIT – said the acquisition will “allow KIT to diversify, grow, and strengthen the resilience of KIT’s distributable cash flow.”
“As the largest petroleum products import storage facility in the Philippines, where demand for petroleum products is expected to grow, PCSPC presents an attractive opportunity for KIT to capture opportunities arising from the strong macroeconomic outlook as well as robust growth fundamentals for imported petroleum products in the Philippines,” Pollard said. – Rappler.com