The Phinma Energy Corp. is set to energy the fuel supply business this year that will serve as the company’s buffer amid the arising fuel supply risks.
Phinma Energy president and CEO Francisco Viray announced their plans to venture into the fuel supply business through One Subic Oil Distribution Corp.
This will become the group’s way of mitigating the domestic fuel supply risk.
“The company will continue cultivating relationships with alternative suppliers in the region to mitigate supply delivery risk and as fall back sources in the future,” Viray said.
“The entry into the fuel supply business, which will primarily serve Phinma Energy group’s pool of diesel plants, will provide the company an immediate diversification platform,” he added.
As of 2017, One Subic Oil has completed the commercial and technical analysis of the new venture.
As of now, Viray said that the unit is securing its necessary permits to initiate the short construction period for the required facility.
Meanwhile, Phinma Energy senior vice president for finance Mariejo Bautista said that the subsidiary will initially serve the company’s needs.
One Subic Oil will have a 16 million liter capacity, just to serve as a buffer for Phinma Energy’s expected 50 million liter usage this year.
“It’s only a minimal investment. We’re going to lease the tank. We’re just going to invest in equipment to load and unload,” she said.
Eventually, One Subic Oil will expand its capacity to serve bunker fuel requirements of other power plants, Bautista said.
Phinma Energy has quite a number of diesel power plants. These include; Phinma Power Generation Corp. (PPGC)’s 52-megawatt (MW) Bunker-C fuel plant in Bulacan; CIP Power Corp.’s 21 MW plant in Bacnotan, La Union; One Subic Power Generation Corp.’s 116 MW diesel plant in Subic Bay Freeport Zone.