DoE to recommend reopening of FPIC oil pipeline

MANILA, Philippines—The Department of Energy will recommend the re-opening of the 117-kilometer oil pipeline owned by the Lopez-led First Philippine Industrial Corp. (FPIC), after recent pressure tests confirmed its stability.

“After three days of pressure test monitoring, we have observed no significant changes in the pressure of the pipeline. Pressure has been stable and ocular inspection of monitoring wells did not indicate any leaks. We will await the formal report of the FPIC, after which the Department of Energy will submit its recommendation to Supreme Court,” said Energy Undersecretary Jose M. Layug Jr.

While the DOE’s recommendation would be to re-open the pipeline, Layug added that its final report to the Supreme Court would still be subject to the inputs from the University of the Philippines-National Institute of Geological Sciences, the UP Institute of Civil Engineering and pipeline integrity expert, and Societe Generale de Surveillance (SGS), an international technical consultant in the area of pipeline operations and engineering.

The final report would likewise be subject to “structural replacements of certain segments (along the pipeline), including those in Pandacan and Bangkal,” Layug added.

The FPIC last week conducted a pressure-controlled leak test to determine the stability of the pipeline as ordered by the Supreme Court and recommended by SGS. Initial reports have already indicated the pipeline to be stable as no leaks were found.

The pipeline was shut down in October 2010 after it  was found out to be the source of the oil that had been  leaking into the basement of West Tower Condominium in Barangay Bangkal, Makati City since July.

The discovery prompted the city government to order the evacuation of all residents in the 22-story building and the declaration of the surrounding areas as a “danger zone” due to the possibility of an explosion.

The leak was later traced to five rice grain-sized holes in a portion of the pipeline located just meters away from the condominium.

In November 2010, the high court issued a “writ of kalikasan” that ordered FPIC to clean up the areas affected by the oil spill.

Prior to its closure, the 117-kilometer Batangas to Manila white oil pipeline supplied more than 50 percent of the petroleum products for Pandacan, considered as the largest and most important depot in the country.

On a nationwide basis, the Pandacan depot also supplies 70 percent of the shipping industry’s needs; 90 percent of lubricant requirements; 75 percent of all aviation fuel needs; and 25 percent of the demand for chemicals.

As such, the Batangas to Manila pipeline is considered Metro Manila’s energy lifeline, supplying to critical industries like transport, construction, food manufacturing, rice and sugar mills, mining and power generation.

The reopening of the pipeline would likely help oil companies reduce the cost of transporting fuel products to Manila as it is still considered the safest and most cost-efficient way of shipping products to Manila.