MANILA, Philippines–Anticipating growth in fuel demand in Mindanao and nearby areas, oil giant Shell may invest up to P6 billion in a fuel import terminal in Cagayan de Oro City.
The project is expected to support industrialization, urbanization and overall consumption growth in Mindanao and Visayas.
Shell Companies in the Philippines VP for communications Ramon D. del Rosario said work was underway to build the fuel import facility, which expands an existing depot in the area. It is scheduled for completion by the end of 2015.
“Mindanao is a huge market but the import terminal can also cover Visayas,” del Rosario said.
Del Rosario said the peace process in Mindanao would encourage investments, which would create jobs and raise consumption in the island.
Shell is undertaking the fuel import terminal project in Cagayan de Oro in partnership with the Philippine Ports Authority (PPA), officials said.
Activity in the state-run port has apparently slowed as cargo shifted to the Mindanao Container Terminal of International Container Terminal Services Inc. but Shell continues to use the Cagayan de Oro port to distribute fuel in Mindanao.
PPA welcomes Shell’s efforts to boost activity at the Cagayan De Oro port because this will ensure regular supply of fuel in Visayas and Mindanao.
Earlier this year, Shell said the fuel import facility in Cagayan de Oro would cater to the power and energy needs of millions of residents, motorists and other end-users and consumers in Visayas and Mindanao.