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Saturday, August 14, 2010

Delivery of aviation fuel via pipeline to Manila Airport

First Philippine Industrial Corp. is in talks with the Manila International Airport Authority and three oil companies over the delivery of jet fuel to the country’s airports.

Ireneo Raule Jr., First Philippine senior vice president, told reporters here that the company, the joint venture of First Philippine Holdings Corp. and Shell Petroleum Co. Ltd. of the UK, was keen on building a 500-meter spur line connecting its pipeline to the airports.

Raule said construction of the line was estimated to cost $1 million and would lower the distribution expense of the Joint Oil Companies Aviation Fuel Storage Plant consortium.

The consortium, composed of Shell, Petron Corp., Chevron Philippines and Exxon Mobil, obtained a concession from MIAA to supply jet fuel to airports up to 2026.

“Today, jet fuel from Shell and Chevron comes from its refinery in Batangas and goes all the way to Pandacan before it is hauled to the Jocasp,” the official said.

The country’s airports have a current jet fuel inventory equivalent to only 1.5 days. The spur line project will extend the inventory level to seven days.

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