Pilipinas Shell Petroleum Corporation (PSPC) will open its third largest import facility in Barangay Darong, Sta. Cruz, Davao del Sur that will have a capacity of 67 million liters of fuel and is eyed full operational status by the third quarter of 2024.
Kit Bermudez, vice president for supply and distribution of Shell, in an interview said the setting up of the said facility will ensure fuel’s availability in Davao Region.
“We can ensure that the even if there are a lot of challenges with the Ukraine war and in the global economy, once we have a depot here definitely the availability of fuels will be more secured,” he said.
Serge Bernal, Pilipinas Shell vice president for Corporate Relations, said the Darong Import Facility will allow the company to fulfill its commitment to support economic activities as the Philippines continues to recover from the impact of Covid-19 pandemic.
“It strengthens our capacity to continue to deliver quality fuels to our customers, consistent with our organization growth plans,” he said.
The Darong Import Facility is a 50-50 joint venture owned by energy company Northern Star Energy Corporation and the DMCI Construction and Equipment Resources Inc. (DMC-CERI), the leading engineering-based integrated construction company, which will be building the facility. Meanwhile, the Sta. Cruz Storage Corporation (SCSC) will design, construct, and operate the facility for Shell with an exclusive-use arrangement for a term contract with an option to extend.
Northern Star Energy Corporation Executive Vice President and COO Juan Miguel Delgado said the facility will help provide southern Mindanao with access to the highest quality fuel products to support economic activities as the region strives to recover from the pandemic.
DMC-CERI chairman Isidro Consunji said the facility can transform the municipality of Sta. Cruz from an agricultural town into an industrial hub.
“Once operational, this facility will allow energy companies such as Shell Philippines to efficiently manage inventory and external volatility. In doing so, they can mitigate or avoid sudden and dramatic price increases for our countrymen, particularly, those in Mindanao,” he said.
Consunji added that with or without the pandemic, the Philippine needs adequate, continuous and affordable fuel supply to sustain the economy and that the said facility can bring the country closer to achieving all that.
DMC-CERI president Tulsidas “Das” C. Reyes said that once the Darong Import Facility is completed, the fuel storage facility will be one of the biggest and most modern of its kind in Mindanao, which is expected to generate and promote economic activities in the area.
The Darong Import Facility is projected to help and promote business continuity and stability in the area, providing resources for mobility during incidents of storms, floods, and other natural calamities.
On his end, Santa Cruz Mayor Jaime G. Lao, Jr., welcomed the establishment of the Darong Import Facility in his municipality.
On the other hand, PSPC is eyeing to establish more than 80 new Shell mobility sites in southern Mindanao by 2025.
“We believe in the prospect of Mindanao. We are growing the business nationwide and Mindanao is one of the priorities in terms of expanding. We want to build 80 mobility sites in Mindanao and we are confident that Mindanao will be growing and that is the reason why we are here,” Bermudez said.
