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Oil firms warn Philippines against closing terminals

Major oil firms yesterday asked the Philippine Supreme Court to review its order to shut down terminals in Manila, warning that this would lead to severe economic disruptions.

Petron Corp, Pilipinas Shell Philippines Corp and Chevron jointly warned that a "disastrous chain of events" would follow should the order be enforced.

They stressed that the terminals, located beside Manila's Pasig River, are their energy lifeline and that any abrupt closure could "result in the immediate shortage of fuels."

"At present and in the foreseeable future, there are no viable relocation sites that have the adequate infrastructure in place and close enough to Metro Manila and its environs to ensure a reliable and safe supply of products," the companies said in a statement.

"The closure of the terminals will affect most industries -- transport, food manufacturing, mining, power generation, air and sea travel. This would consequently have a negative effect on the national economy," they said.

The terminals supply about half the total demand in the capital, including 1,800 retail stations.

Most lubricants that are supplied throughout the Philippines are also stored in the terminals, the companies said.

The Supreme Court in ordering the closure, upheld the Manila city government's legal right to change the classification of Pandacan, the central district that hosts the terminals, from an "industrial" to a "commercial" district.

It also upheld the city's argument that lives could be endangered in a terrorist attack on the depots, which some security experts have said are vulnerable.

The city government first ordered the closure shortly after the Sept. 11, 2001 terrorist attacks in the US.

The oil companies, however, took the city to the courts over the issue.

The companies in their joint petition with the Supreme Court said their main concern was for a "reliable, safe and steady supply of fuels," adding that additional security measures have been put in place.

Supreme Court officials were not immediately available to comment but the justices are known to rarely reverse their rulings.
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