A two-phase oil depot project by Labrador Oil Terminals Inc. (Loti) will soon be installed in Pangasinan with a capacity of 88 million liters, worth P1.2 billion.
The first phase will have a capacity of 28 million liters, while the second phase will be at 60 million liters. Both are targeted for completion next year in February and June, respectively.
“The Labrador Oil Terminal seeks to cater to the needs of the oil industry players in northern Luzon and serve as a viable alternative to Subic and Bataan. Once it operates, the terminal is projected to have a significant impact in the region in terms of making the operations of the independent oil traders and distributors more cost-efficient, thus making the market more competitive,” Loti chairman Jack Tan was quoted in a BusinessMirror report.
Currently, Ports of Subic and Bataan are the only source of fuel deliveries in Region 1 and 2, however it hopes to lower down the fuel prices with the completion of the oil depot project as it would bring the companies and consumer closer.
Change in pump prices could range from P0.80 to P1 per liter once the Loti has completed its oil depot in Pangasinan, according to Tan.
“Loti saw the need to level the gap of fuel prices and sufficiency, especially in the provinces since most of the storage facilities in the country are confined in the major ports near the bigger cities which resulted in a significant issue in fuel costs as freight is variedly higher and is normally passed on to consumers,” Tan said.
Another feature of the oil depot is an above-ground storage tank which will have a 88 million liter of fuel oil, submarine, pipeline, and platform jetty.
After the project’s completion, it will store, distribute, market and/or blend fuels for Regions 1 and 2 consumers, with a projected monthly consumption of 40 to 50 million liters.
“As a new industry player, Loti supports the promotion of the downstream oil industry by upgrading the downstream infrastructure and updating the country’s oil supply through the establishment of an oil stockpile,” Tan added.