Shell wins P14B worth of supply contracts


MANILA, Philippines—Pilipinas Shell Petroleum Corp. bagged P14.3 billion worth of contracts to supply industrial fuel oil to government-owned power generation assets and state-managed capacities.

According to state-run Power Sector Assets and Liabilities Management Corp. (PSALM), Shell was awarded the contract to deliver P3.97 billion worth of industrial fuel oil to the 630-megawatt Malaya thermal power plant this year.

PSALM was, likewise, awarded a P3.76-billion contract to supply fuel for the 100-MW diesel facility of Western Mindanao Power Corp. (WMPC) in Sangali, Zamboanga; a P2.28 billion contract for the 55-MW bunker-fired power station of Southern Philippines Power Corp. (SPPC) in Alabel, Sarangani; and a P4.3-billion contract for the 146-megawatt Naga power complex in Cebu.

The state agency now manages and conducts bidding for the procurement of fuel, having taken over this function from the National Power Corp. It will continue to do so until the power generation assets and the management of the contracted capacities are turned turned over to the private sector.

At present, the Malaya thermal plant remains under the government as the facility is being considered by the Department of Energy for conversion into a natural gas-fed plant that will provide the anchor load for the planned gas pipelines in Luzon, particularly the $2.1-billion Batangas-Manila pipeline. The plan was to convert the power plant prior to its sale to the private sector so it can fetch a higher price.

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Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • ApoLapullapu

    PSALM is becoming another PCGG.  It will live beyond its mandate because its Managers are enjoying the perks.  Privatization under the EPIRA Law will not materialize because of this.

  • rein ramirez

    bakit hindi sa PETRON? gobyerno mismo hindi sinusuportahan ang sariling atin ah

    • ern castillo

      alamin mo muna kung kanino na yung petron ngayon.

  • Gibo

    Why Shell? Why not ExxonMobil or Chevron of USA which is our ally in defense. Hina talaga ng mga kukuti. Dyos ko sa kangkungan tayo pupulutin nito.

    • Jeanne Thompson

      Di ba kaya nga bidding. Kung saan mas makakatipid ang gobyerno ay iyon ang dapat na piliin?

    • Paul Eugenio

      Ikaw kamo ang mahina ang “kukuti”. Google mo our laws on public bidding ang procurement. TROLL.

    • ern castillo

      may procurement law…BOBO!!!
      Sa kangkungan ka tumira!

  • batangpaslit

    what happened to PNOC a state owned distributor of fuel?

    • Paul Eugenio

      PNOC doesn’t distribute fuel anymore after it sold Petron to Ongpin. But it still has participation in renewable energy and upstream projects, mostly natural gas.

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