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Petron to move out of Pandacan oil depot by end 2015, spends P15 billion on alternative sites

Photo from means BUSINESS

MANILA - Petron Corp has already spent P15 billion to establish alternative sites to its Pandacan oil depot in Manila.

In a statement, Petron chairman Ramon S. Ang said the company is farming out its depot operations to Rosario, Cavite; Limay, Bataan; and Navotas, Metro Manila.

"We are law abiding citizens. When we promised the City of Manila that within five years we will be moving out of Pandacan I think we are the only one in compliance to that promise," Ang said.

"By end of 2015, we should be totally out of Pandacan," he said.

The Pandacan oil depot, the largest in the country, is jointly operated by Petron, Chevron Philippines Inc and Pilipinas Shell Petroleum Corp.

The facility supplies 1,800 fuel stations in Metro Manila and nearby provinces; 70 percent of the shipping industry's fuel requirements; 90 percent of lubricants nationwide; and 75 percent of aviation fuel needs in the country.

Various civic groups have scored the facility for its security, health and environmental risks because of its proximity to residential areas and the Pasig River.

In light of this, Petron agreed to voluntarily move out of Pandacan in five years or by 2016. Shell and Chevron, on the other hand, previously said they will maintain their operations in Pandacan.

However, Manila Mayor Joseph Estrada recently ordered the oil companies to move out of Pandacan by 2016 in compliance with the reclassification of the industrial complex into a commercial zone.