Downstream oil investments hit P211 billion since deregulation

MANILA, Philippines — Investments in the Philippine downstream oil industry reached P210.69 billion since the industry was deregulated in 1998 to end-2021, based on the Department of Energy-Oil Industry Management Bureau (DOE-OIMB) year-end comprehensive report.

The report showed total actual investments in the industry reached P20.41 billion last year, a 263 percent surge from just P5.62 billion in 2020, as the economy and demand recovered since the onset COVID-19 pandemic.

Of the total investments, the biggest amount was poured into importing related activities at  P17.05 billion.

The industry also saw a 19.59 percent rise in participants from 18,218 in 2020 to 21,786 last year.

In terms of activities, retailing had the most number of participants at 21,553.

On the other hand, refining and terminalling saw a reduction in the number of participants, particularly due to the shutdown of Pilipinas Shell Petroleum Corp.’s (PSPC) refinery in Batangas.

Meanwhile, the industry reported an increase of 6.05 percent in retail outlets operating nationwide, bringing in a total of 10,802 retail outlets at the end last year.

Luzon accounted for more than half of the total with 5,802, followed by Mindanao with 2,577 and Visayas with 2,423.

“There were reports on continuous construction of retail outlets and at the same time closure and re-branding in the year 2021 to modernize the facilities and services as part of compliance to Department Circular DC2017-11-0011,” the report said.

The said DC promulgated revised rules and regulations governing the business of retailing liquid fuels.

While the nationwide number of retail outlets saw an increase, the report showed that the National Capital Region saw a decline in stations from 1,096 in 2020 to 1,032 last year.

“Reports of closure were significantly noted in the year 2021 due to the following reasons: continued financial losses, business operations affected by COVID-19 pandemic, and termination or non-renewal of dealership contract,” the DOE-OIMB said in reply to The STAR.

The report also said the number of liquefied petroleum gas (LNG) establishments surged by 43 percent from 7,655 to 10,959.

Luzon still has the most number of LPG establishments with 4,583, which increased by 83.32 percent increase from 2020 count.

In terms of total storage facility, the country has a total number of 179 storage facilities with a capacity of 40,862 thousand barrels (MB).

Of the total, 51 are import terminals while the remaining 128 depots are distribution facilities/networks – all privately owned by downstream oil industry players.

Of the total country’s storage capacity, 9,598 MB or 23.49 percent  are refinery storage capacities located in Bataan.

The Bataan Refinery is owned by Petron Corp., with a total storage capacity of 9,598 MB which comprises of crude oil; intermediate stocks and finished petroleum products.

The remaining country storage capacities of 24,312 MB or 50 import terminals are capable to receive imported finished petroleum products while the 6,952 MB or 128 depots are distribution facilities/networks.