By Alena Mae S. Flores

State-owned Philippine National Oil Co. and a foreign partner may put up a 45-kilometer petroleum pipeline that will link Metro Manila to the refinery of Petron Corp. in Bataan.

The move is seen to resolve the Pandacan depot issue that has long been festering oil companies.

A ranking PNOC official said the company was looking at the proposal of a European firm to team up in constructing the pipeline, estimated to cost $200 million, from Petron’s refinery in Limay, Bataan to a receiving terminal in Pulilan, Bulacan.

The 45-km oil pipeline will traverse through Manila Bay to Bulacan. The PNOC official said the pipeline could be completed within 18 months.

PNOC owns a 40 percent stake in Petron. The oil company, together with Pilipinas Shell Petroleum Corp. and Chevron Philippines (Caltex), jointly operate the Pandacan oil facility.

The PNOC official added that the European company acquired a 64-hectare property in Pulilan, Bulacan near the North Luzon Expressway. The property can be used as an alternative relocation site for the Pandacan oil depot.

He said the foreign investor also had existing project at the Coastal Road.

“Based on their proposal, they have already put a buffer zone in their property,” the official said.

The PNOC official said Bulacan was an ideal location for an oil warehouse because of its proximity to Metro Manila, which presently consumes 60 percent of Pandacan’s supply.

“Though the proposed facility will be directly beneficial for Petron as it can directly pump its products from Limay to Pulilan, other locators in Pandacan like Shell and Caltex could also use the facility if they like,” he said.

Financing will be shouldered by the European group, he said, stressing that it would be at no cost for PNOC.

Only PNOC and First Gen Corp. were granted a congressional franchise to put up pipeline facilities.

“The foreign group is making an offer to PNOC to undertake the project at no cost. They will give free equity in exchange for the PNOC franchise,” he said.

Oil companies said the abrupt closure of the Pandacan depot would trigger fuel shortage and affect major industries in Metro Manila and neighboring provinces.

“The Pandacan Terminal is Metro Manila’s energy lifeline. Any abrupt closure will result in the immediate shortage of fuels,” they said in a position paper.

The terminal supplies 50 percent of the country’s total demand, including 1,800 retail stations in Metro Manila and outlying provinces, 70 percent of the shipping industry’s fuel needs nationwide, 90 percent of lubricants nationwide and 75 percent of aviation fuel nationwide.

“The closure of the terminals will affect most industries-transport, construction, food manufacturing, mining, power-generation, air and sea travel etc. This would consequently have a negative effect on the national economy,” the oil firms said.

They said there was no viable relocation site for the Pandacan depot despite calls to move the depot to the Harbor Center in Tondo.