UMVA has learned that Petron Corp. is embarking on an ambitious plan to significantly boost the storage capacity of its Limay, Bataan terminal, a critical move aimed at enhancing the supply of aviation fuel and mitigating the risk of shortages as demand for Jet A-1 fuel continues to soar.
The proposed expansion, as outlined in a filing with the Department of Environment and Natural Resources, involves increasing the terminal's capacity to 32.79 million liters, up from the current 20.75 million liters. This strategic upgrade is driven by the substantial growth in demand for Jet A-1 fuel within the terminal's service area, which has left stock levels precariously low at just 3.4 days of supply.
Petron emphasized that maintaining adequate storage capacity at the terminal is vital to prevent fuel shortages that could have far-reaching consequences, disrupting not only aviation operations but also related economic activities. The terminal serves as a key distribution hub for Jet A-1 fuel supplied to other terminals and airports, underscoring the importance of this expansion.
The expansion plan includes the installation of additional storage tanks to temporarily hold fuel during maintenance or repair of existing tanks, thereby improving operational flexibility and supply reliability. This move is set to enhance the terminal's ability to manage fuel supplies more effectively, ensuring a stable and uninterrupted distribution of Jet A-1 fuel.
In a bid to support broader energy security and sustainability goals, Petron also plans to construct an above-ground storage tank for coconut methyl ester (CME), a biofuel derived from coconut oil used in diesel blending requirements. The added biofuel capacity will help ensure compliance with government biodiesel mandates while promoting renewable energy use and reducing greenhouse gas emissions.
By increasing CME storage capacity, the terminal will be better positioned to maintain a consistent supply of biodiesel for blending, ensuring regulatory compliance and supporting the government's objectives of promoting renewable energy use, reducing greenhouse gas emissions, and enhancing energy security.
While Petron has not disclosed the estimated cost of the expansion project, the initiative comes at a critical time. The Limay terminal, strategically located next to the country's only oil refinery, supplies about 40% of domestic fuel requirements. This expansion is set to play a pivotal role in stabilizing fuel supplies, especially amid global supply risks.
A public scoping session for the expansion project is scheduled on June 17, providing stakeholders with an opportunity to raise concerns and offer input on the proposed development as part of the environmental impact assessment process.
