PNOC Diesel Shipment Arrives at Subic Port, Boosting National Energy Security

The Philippine National Oil Company (PNOC), a government-owned and controlled corporation, has received a major diesel fuel shipment at the Port of Subic Bay, marking a significant move to reinforce the country’s energy security amid global supply uncertainties.

The shipment, totaling 44,119 metric tons or approximately 329,505 barrels of diesel fuel, arrived in Subic Freeport on April 10 through the storage facilities of the Philippine Coastal Storage and Pipeline Corporation (PCSPC).

Subic Bay Metropolitan Authority (SBMA) Senior Deputy Administrator for Port Operations Ronnie Yambao said the arrival of the diesel cargo underscores the strategic role of Subic Bay in supporting the country’s fuel supply requirements.

He added that on March 30, the Bureau of Internal Revenue (BIR) issued a special permit to PNOC Exploration Corporation (PNOC-EC) to expedite the emergency importation of petroleum products, particularly diesel, to help stabilize the nation’s energy supply.

“The special permit is intended to streamline standard bureaucratic and customs procedures that could delay the immediate importation of fuel,” Yambao said.

PNOC-EC is set to procure a total of two million barrels of oil and 22,000 metric tons of liquefied petroleum gas (LPG) as part of efforts to establish a national buffer stock aimed at mitigating price volatility and ensuring supply stability.

These emergency reserves are expected to add approximately 10 days of fuel supply while further strengthening the country’s LPG reserves in response to market disruptions in the Middle East.

Subic Bay Freeport is home to PCSPC, the country’s largest petroleum import storage facility, which holds a substantial share of the Philippines’ national fuel reserves.

The facility has an estimated storage capacity of 6.3 million barrels, or roughly one billion liters, accounting for around 20 percent of the country’s total fuel storage capacity.

Spanning approximately 160 hectares, the depot is strategically located across the Boton and Maritan Hill areas within the Freeport.

PCSPC also utilizes former infrastructure from the historic U.S. Naval Base in Subic Bay. During the height of the Vietnam War, the site reportedly handled the largest volume of fuel oil among all U.S. naval facilities worldwide.

Today, the facility remains a vital logistics hub for the storage and distribution of diesel, gasoline, and jet fuel to key markets including Metro Manila, Central Luzon, and Northern Luzon. (SNL)

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LOOK: SBMA Official Statement on Yosemite Trader in Subic Bay

This pertains to the news that have circulated in social media and other media platforms regarding the vessel Yosemite Trader which had allegedly reached the Port of Subic on January 9, 2024.

Yosemite Trader, an oil products tanker that is registered in the United States, applied for Entry Clearance at the Seaport Department of the Subic Bay Metropolitan Authority on January 2, 2024, through its ship agent Parsh Marine Philippines, Inc. The vessel carried 5million gallons of F-76 which is a type of military fuel for ships that are equipped with the latest turbine engines.  The cargo was to be transferred from a US military facility at Red Hill, Pearl Harbor, Hawaii to the Philippine Coastal Storage and Pipeline Corporation, a commercial fuel storage facility in the Subic Bay Freeport Zone.

In the morning of the scheduled arrival however, ship agent Parsh Marine requested for the cancellation of the vessel’s Entry Clearance, accordingly due to the absence of a “diplomatic clearance" from the Department of Foreign Affairs.

It is clear therefore that Yosemite Trader has not entered the waters of Subic Bay, and was not able to discharge its cargo at the storage facility as earlier reported.

 

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PCSPC to expand fuel storage by 6.3 million barrels in Subic Freeport

The Philippine Coastal Storage and Pipeline Corporation (PCSPC) is expanding their fuel storage capacity to 6.3 million barrels inside this premier Freeport.

During the groundbreaking ceremony at the Subic Bay Freeport on Tuesday, Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan disclosed that the company is set to construct two new 180,000-barrel-capacity fuel storage tanks this year and the next.

Tan was the guest of honor at the groundbreaking ceremony led by PCSPC Chief Executive Officer Richard Tiansay at the Maritan Tank Farm here.

Senior Deputy Administrator for Business and Investment Renato Lee III, PCSPC Chief Finance Officer Tricianne Zingapan, Metalife Builders Development Company, Inc. President Arnel Dumalaog and Vice President For Operations Milo Sesante were also present to witness the ceremony.

According to Tiansay, the two 180,000-barrel-capactiy fuel storage tanks cost of P800-million, with the first tank expected to be completed by March 2024, while the second tank by August 2024.

The two tanks will also be constructed at the Maritan Tank Farm.

He added that the construction of these two tanks were tasked to Metalife Builders Development Company, Inc., since the company has adhered with international standards. Tiansay also said that all tanks will be equipped with safety and environmental control equipment including fire protection and pollution control.

Chairman Tan said that the expansion of the company’s operations is welcome news, adding that part of his administration’s thrust is the development of existing companies inside the Subic Bay Freeport Zone. He also expressed that companies will certainly flourish under his term.

“We want Subic Bay Freeport to develop and become the preferred sustainable investment hub and eco-tourism destination in Asia Pacific by 2030. The construction of these two 180,000-barrel-capacity fuel storage tanks is a step forward towards that goal,” he added.

In 1993, PCSPC initially assumed operation that only had a 2.5-million barrels capacity. The company has then been expanding ever since. The Maritan expansion project, which started in 2012, is now on Phase 4 of the construction in the area.

The construction of the two barrels will increase the capacity of the PCSPC by up to 6.3-million barrels or one billion liters of fuel storage. Once operational, the project is expected to increase the vessel dockage at Subic Pier and tank truck deliveries, which will attract more petroleum fuel clients to utilize Subic Freeport as their fuel hub. (MPD-SBMA)

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SBMA conducts oil spill exercise to boost emergency response

The Subic Bay Metropolitan Authority (SBMA), along with stakeholders in the maritime sector, conducted an Oil Spill Simulation Exercise (SIMEX) at the Boton Wharf here on Friday to strengthen capabilities in emergency response.

According to Diego Aviles of the SBMA Seaport Department, who was exercise director, the exercise was in line with SBMA thrust to improve its competency to respond in the event of an oil spill, as well as develop better coordination with concerned stakeholders here.

 Aviles said Pure Petroleum Corporation and the Subic Seaport Terminal Inc., including the motor tanker MT WRC1, participated in the simulation.

“Part of the exercise is to test the capabilities of the motor tanker vessel and the Boton port facility, identify concerns among those involved, assess the needed resources to sustain the oil spill response operation, activate the Seaport Emergency Response Team, and measure the deployment of the oil spill equipment and response time,” Aviles explained.

Some groups also joined the SIMEX as observers, he said. These included the SBMA Law Enforcement Department, SBMA Disaster Risk Reduction and Management Council, SBMA Harbor Patrol, SBMA Fire Department, and the Coast Guard Sub-Station Olongapo’s Marine Environmental Protection Group.

Aviles said an oil spill is defined as the release of liquid petroleum hydrocarbon into the environment, especially the marine ecosystem, due to human activity, and is a form of pollution.

He said the term is usually used for marine oil spills, where oil is released into the ocean or coastal waters, but spills may also occur on land.

He added that oil spills may be due to releases of crude oil from tankers, offshore platforms, drilling rigs and wells, as well as spills of refined petroleum products such as gasoline or diesel fuel and their by-products, heavier fuels used by large ships such as bunker fuel, or the spill of any oily refuse or waste oil.

At least nine shipping lines regularly make ship calls in the Subic Bay Freeport, which also receives port visits by military ships from time to time. Records show that ship calls increased from 874 in January to September 2020 to a total of 918 in the same period this year.

SBMA Chairman and Administrator Wilma T. Eisma said earlier that the agency further expects container ship traffic to grow this year after posting a 12 percent increase in containerized cargo volume in the third quarter. (MPD-SBMA)

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China’s JOVO prepares ship-to-ship cargo handling in Subic Bay

All is set for China’s leading clean energy service provider JOVO Group Company Ltd. Guangdong to commence its ship-to-ship (STS) operations here for liquefied natural gas (LNG).

The STS transfer operations involve mother vessels loaded with LNG which were transferred to vessels before shipping to ports of China.

A petroleum carrier that transports Liquefied Petroleum Gas (LNG) through ship-to-ship transfer

Subic Bay Metropolitan Authority (SBMA) administrator Atty. Wilma Eisma said that the SBMA Board of Directors recently approved the STS operations of JOVO in Subic Bay and preparations for the maiden voyage tentatively scheduled on the third week of April is in the progress.

“We are expecting more STS operators to use Subic Bay as their hub. Because it is more cost-effective due to its strategic location,” Eisma said.

SBMA Seaport General Manager Jerome Martinez said JOVO will bring LNG to the Philippines from Australia and Indonesia using a 94,000-ton mother vessel. While anchored, it will be transferred to smaller 47,000-tonnage feeder vessels and bring them to China.

In terms of revenue, it is expected that the Port of Subic will earn $500,000 from services, including tug boat services, port services and anchorage, chandlers, bunkering and food supplies.

Aside from JOVO, Martinez said that three more ship-to-ship service providers have expressed keen interest to operate in Subic Bay.

“There are actually four proponents of ship-to-ship operations that submitted letters of intent to operate here in Subic Bay,” Martinez said.

“They already presented their proposals to a committee, headed by SBMA director Cecille Bitare, which evaluates STS proposals prior to approval of the board,” Martinez added. (RAV/MPD-SBMA)


Read also: China’s Jovo to start ship-to-ship cargo handling in Subic

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China’s Jovo to start ship-to-ship cargo handling in Subic

China’s leading clean energy service provider Jovo Group Company Ltd. Guangdong (Jovo) on Wednesday said it is ready to engage in ship-to-ship operations in Subic Bay.

The ship-to-ship (STS) transfer operations will involve oil tankers carrying liquefied natural gas (LNG) from Asia Pacific that will be transferred to smaller vessels bound to ports in China. STS addresses the shipping of petroleum products to China as most of its ports cannot accommodate bulk carriers because of depth issues.

A petroleum carrier that transports LNG through ship-to-ship (STS) transfer

In a public consultation, Jovo International Business general manager Yuan Lu said the LNG will be brought to Subic Bay from Australia and Indonesia by Belgium-flag carrier, a 94,000-ton bulk carrier. The cargo will then be transferred while at sea to a smaller 47,000-tonnage capacity ship bound for China.

Lu said that the STS operations of Jovo in Subic will be assessed after five years, results of which will determine if a regional hub should be established here to accommodate delivery of LNG to the local market and the rest of Southeast Asia.

He said Jovo’s long-term plan is to introduce the LNG to local markets in the Philippines, especially those in the transportation sector as this kind of fuel is safe and environmentally friendly.

Lu said that company Jovo has decades of comprehensive experience in clean energy shipping, storage, processing and sales with zero accidents, and assured that LNG and the STS operation will be environmentally safe.

The consultation was attended by local fishermen, members of the Philippine Coast Guard, PNP Maritime Group and workers of Subic Bay Metropolitan Authority (SBMA) held at the SBMA Seaport Admin Building.

Fishermen belonging to Subic Bay Fisheries and Aquatic Resource Management Council (SBFARMC) said they are grateful to SBMA and Jovo for the holding of the consultations prior to the start of the STS operation in Subic.

“We are thankful for the invitation of SBMA headed by its new chairman Martin Diño and Jovo for this consultation for them to hear our concerns and enlighten us on this ship-to-ship operation that might affect our livelihood,” said SBFARMC chair Laureano Artagame.

Artagame noted that large ships oftentimes occupy the fishing areas of small fishermen in Subic Bay, but with the consultation, accidental “intrusion” can now be avoided.

Meanwhile, China Classification Society (CCS) senior engineer Fan Hong Jun, in his presentation, compared highly combustible gasoline or liquefied petroleum gas against LNG which has lesser greenhouse effect and is lighter than air, making it safer in case of spillage.

With a property temperature of -162 ̊C, LNG is hard to burn but evaporates rapidly, Fan explained, adding that if it spills into our oceans or even into our water source, it will not affect marine life, and our water remains safe to drink.

“It burns slowly, and does not mix with water nor kill fish or any other marine life. LNG is very environmental friendly,” he said.

In terms of revenue, Fan said the Port of Subic will earn tens of millions of pesos from services, including tug boat services, port services and anchorage. This does not include indirect revenue from payments for tugboats, chandlers, bunkering and food supplies. (RAV/MPD-SBMA)

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Seaoil builds P350-million station along SCTEX route

Competition of oil industry players along tollways onward to North Luzon is expected to intensify as independent player Seaoil Philippines, Inc. is now advancing to completion its P350 million mega-station along the Subic-Clark-Tarlac Expressway (SCTEX) route.

The company is one of the ‘independents’ given the permit to put up a new gasoline station within the SCTEX stretch.

A portion of the Subic-Clark-Tarlac Expressway (SCTEX)

While other gasoline stations – generally by the oil industry majors – serve the expanse of proximate North Luzon Expressway, it is anticipated that the contest on cornering customer patronage will eventually converge among all tracts of these so-called fast travel-designed roads, including that of the Tarlac-Pangasinan-La Union Expressway (TPLEX).

According to Seaoil, its SCTEX station is targeted for full commercial operations by the last quarter of this year.

This venture is its collaboration with Double Dragon Properties Corporation of Tony Tan Caktiong of the Jollibee Foods Corporation fame.

Seaoil president for retail and chief finance officer Mark L. Yu noted that the SCTEX mega-station “will be the company’s banner station that will greatly improve our brand presence.”

He added that this shall also be the oil firm’s new network “to serve more motorists, especially those travelling from Northern Luzon and cities like Baguio.”

It has been indicated that one of the distinguishing and striking amenities of the service station would be a mall within its compound, courtesy of its property developer-partner.

“The full service filling station will have an array of restaurants and convenience stores, and will feature spacious rest rooms, parking spaces and relaxation areas for travellers,” the oil firm said.

It was some sort of a prognostic vision for Seaoil, which sounded off years back, that it wants to be “the fuel of choice” – in some way parallel to “the fast food of choice matrix” that its partner’s food venture affiliate is known for.

For the longest time, the expressways had been confined to the petroleum retail service of the traditional players, but with the downstream oil industry’s deregulation, even these segments of the market also opened up for wider competition. (Myrna Velasco, Manila Bulletin)

http://www.mb.com.ph/seaoil-builds-p350-million-station-along-sctex-route/

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