PNOC buys LPG from US to boost PHL reserves

ABOUT 21,000 metric tons (MT) of liquefied petroleum gas (LPG) procured from the US has landed in the Philippines, according to state-run Philippine National Oil Co. (PNOC).

In a statement on Sunday, the PNOC said the shipment arrived at the CISC Industrial Park for storage at the South Pacific, Inc. Terminal in Calaca, Batangas.

The cargo, consisting of 50% refrigerated propane and 50% refrigerated butane, was procured via commodity trader Trafigura Pte. Ltd. on April 13.

The procurement was undertaken under the  Department of Energy’s (DoE) Emergency Energy Security Program. 

Group company PNOC Exploration Corp. is tasked with procuring diesel under the program.

In April, PNOC started seeking buyers for the LPG, which it procured at an indicative price of P90,390 per MT. Buyers are required to commit to a minimum volume of 2,000 MT per order.

As an anti-hoarding measure, volume to be awarded to any single buyer has been capped at 50% of the total available cargo per order. 

“The delivery of PNOC-procured LPG demonstrates the concrete actions being undertaken by the DoE and PNOC to strengthen the country’s fuel reserves, support supply stability, and help ensure the continuous availability of LPG during the ongoing national energy emergency,” PNOC Senior Vice- President Graciela M. Barleta said.

As of May 22, the Philippine LPG inventory was equivalent to 41.49 days’ demand.

Earlier this month, most oil companies implemented an increase in LPG prices of P1.22 per kilogram (kg), driven by foreign exchange fluctuations and higher import costs.

As a result, an 11-kg cylinder container of LPG currently fetches as much as P1,701.77. — Sheldeen Joy Talavera