Oil companies to leave Pandacan by November

The three big oil companies are all set to vacate the oil depot in Pandacan, Manila, by November ─ almost a year after the Supreme Court ordered it closed due to public safety, security and health reasons.

Shell and Chevron have already started dismantling and transferring their facilities while Petron has already dismantled all of its fuel tanks deeming the five-year grace period enough to comply with the Supreme Court ruling.

Mayor Joseph Estrada and Vice Mayor Isko Moreno monitored on Monday morning the status of the companies’ dismantling process.

Proving that all of their oil tanks have been relocated already, Petron Chairman and CEO President Ramon Ang used a lighter in the former oil depot. All of their oil facilities were transferred to Navotas, Cavite and Bataan.

Petron, Ang said, would soon present the master plan to Estrada regarding the proposed food complex in the vacated area to generate more jobs.

Petron will also leave their clinic, which has X-ray and Ultrasound services in Pandacan for the community, according to Ang.

In a statement, Raissa Bautista of Chevron said their oil firm has stopped using the oil depot since June 2014 and has completed 40 percent of its demolition schedule, shifting most of its volume through other supply points like the Batangas terminal.

Meanwhile, three of 14 Shell fuel facilities have been dismantled already and were relocated to their refinery in Cabangaw, Batangas, Pilipinas Shell Petroleum Corp President Edgar Chua said.

Chua said the fuel tank relocation might have an effect in terms of market cost and reliability and the risk of a supply gap since supply would come from outside Manila. Problems, he said, might arise during periods of the truck ban and during floods.

“But since it’s free market, if other oil companies would not increase, we will not increase and just absorb the higher cost,” Chua said.

People from the six barangays surrounding the depot will also lose jobs with the closure of the facility.

In a letter to the CEOs of the companies, Mayor Joseph Estrada thanked them for their compliance to “ensure public safety,” and promised support in developing the area for commercial and residential purposes in accordance with the city land use plan.

Estrada also hoped that the plans would “generate more revenues for the city.”

According to Executive Order no. 15, the three committees of the Technical Monitoring group of the Manila local government shall conduct ocular inspection on the oil depots starting August 24.