PILIPINAS Shell intends to complete three vital projects this year so it can reap the benefits at the soonest time possible.
“This year, we hope to complete the import terminal in Cagayan de Oro,” said oil firm President Ed Chua. He said the P6-billion fuel-import terminal is likely to be completed toward the end of 2015. Shell is undertaking the fuel-import terminal project in Cagayan de Oro in partnership with the Philippine Ports Authority. The facility will cater to the power and energy needs of millions of residents, motorists and other end-users and consumers in the Visayas and Mindanao.
The oil firm is also working on to upgrade its refinery in Tabango, Batangas, at a cost of $100 million to $150 million. Shell was looking at expanding its 110,000-barrel-per-day refinery to meet new fuel standards that will take effect in 2016. Ideally, it should be finished in time for the 2016 implementation of “Euro 4 [PH]” grade diesel and gasoline set to take effect by January 2016. Euro 4 is a globally accepted European emission standard for vehicles.
The Euro 4 standards require fuel to have significantly low amounts of sulfur and benzene. However, increasing congestion at Port of Manila has hampered Shell’s refinery-upgrade plan.
“Although there are delays in the refinery [upgrade], we are trying to do a catch-up. Hopefully, we will finish it within the year. If not, early next year,” said Chua.
Energy Undersecretary Zenaida Monsada earlier said the refinery upgrade “will be delayed by one quarter because equipment cannot be released immediately [due to port congestion].”
The third project that Shell intends to finish by middle of this year is Phase3 of the Malampaya Deep Water Gas-to-Power facility.
Shell Philippines Exploration BV (SPEX), the upstream company of Shell in the Philippines, is undertaking Phase 3 project, which is part of Malampaya’s original field development plan to sustain the level of natural gas being extracted from the reservoir for electricity production.
“Those three projects are already definite,” said Chua, while adding that Shell is counting on a revenue boost once these projects are completed.
“The impact will already be 2016. Maybe, the completion of Malampaya Phase 3 will also be felt this year because it will be finished by middle of this year. However, the impact is in the sense that it will sustain the delivery of gas as the same level of what we have now,” said the Shell official.
1 comment
Will these projects push through amidst the falling prices of oil in the global market? Renewable energy is the fad nowadays.