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PIPELINE REOPENED
Fuel supply back to normal

By Amy R. Remo
Philippine Daily Inquirer
First Posted 05:31:00 07/30/2010

Filed Under: Consumer Issues, Oil & Gas - Downstream activities

MANILA, Philippines?The Department of Energy (DOE) yesterday said fuel supply in Metro Manila has normalized, after the pipeline that delivers fuel from Batangas to the Pandacan depot in Manila resumed operations last July 24.

Some service stations were reported to have experienced a tightening of supplies, particularly of diesel, after the Makati government ordered the shutdown of the pipeline of First Philippine Industrial Corp. (FPIC) on July 12 following the discovery of a gas leak in the basement of the West Tower condominium on Osmeña Highway in Barangay Bangkal.

Following a joint inspection conducted by the DOE and the Makati engineering office, it was found that FPIC was not the source of the leak and was allowed to resume deliveries, said Energy Secretary Jose Rene D. Almendras.

The shutdown affected as many as 100 Shell stations in Metro Manila, said Roberto Kanapi, vice president for communications of Pilipinas Shell Petroleum Corp.

Kanapi said Shell?s fuel supply would be fully normalized by today, adding that the company would not pass on to consumers the costs or any foregone revenues it incurred from the shutdown.

Shell will also ?absorb any impact on the fuel price to consumers when the company resorted to using barges and trucks? to deliver fuel when the pipeline was ordered shut down.

The FPIC deliveries were stopped on July 12 when the leak at West Tower was discovered and resumed on July 15. They were shut down again on July 21 when the joint inspection started and were resumed on July 24.

The Makati government has ruled that the West Tower management was negligent when it allowed water to accumulate in its basement which prevented authorities from tracing the cause of the leak.

Results of the tests conducted on the pipelines of FPIC showed that these were negative for leaks.

The FPIC pipeline, which transports about 60 percent of Metro Manila?s petroleum needs 24 hours a day, has operated without incident since 1969.



Copyright 2011 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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