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Prolonged Pipeline Shutdown Not Sustainable

Supply of petroleum products to Pandacan are expected to normalise before the end of this week as a result of various contingency measures undertaken by Pilipinas Shell Petroleum Corporation (PSPC) in response to the Batangas-Manila pipeline shutdown. However, runouts in gasoline stations and customers are expected to continue for a number of weeks as there is a backlog of deliveries. In addition, significant logistical difficulties, including road traffic, river tide restrictions, jetty congestion issues will continue to pose challenges in ensuring safe and reliable supply of products to the market.

“A continued shutdown of the pipeline is unsustainable. We have always maintained that the pipeline is still the safest, most reliable and efficient mode of transportation for petroleum products. It is extremely urgent and critical for it to resume operations in order to ensure continuity of supply to the market”, Roberto Kanapi, Vice President for Communications said.

The Batangas-Manila (Bat-Man) pipeline is the largest commercial oil pipeline in the country transporting crude and refined petroleum products from Batangas to Metro Manila.  Primarily, the Bat-Man pipeline supplies more than 50% of the petroleum products for Pandacan, the largest and most important depot in the country, supplying:

  • 50% of the country’s total demand for fuels, including around 1,800 retail stations for Regions 1-4 and 459 stations in Metro Manila;
  • 70% of the shipping industry’s needs nationwide;
  • 90% of lubricant requirements nationwide;
  • 75% of all aviation fuel needs nationwide; and
  • 25% of the demand for chemicals nationwide.

The Bat-Man pipeline is Metro Manila’s “energy lifeline” supplying critical industries like transport, construction, food manufacturing, rice and sugar mills, mining, power generation, among others.

PSPC continues to work closely with the pipeline owner and operator, First Philippine Industrial Corporation (FPIC), the Department of Energy and various government agencies to achieve the urgent resolution of the issue to ensure continued safe and reliable service to the public.

We will continue to give updates, as they are available. For any customer queries, please contact: (02) 878-8888 or email feedbackandissues-ph@shell.com.