MANILA, Philippines - The Department of Energy and Isla LPG Corp. on Thursday assured there is adequate supply of liquefied petroleum gas (LPG) in the market.
In a statement, the DOE said the decommissioning of the Shell Gas Eastern Inc. facility will only have an "isolated" effect to independent refillers and marketers, particularly those in Southern Luzon.
“There is sufficient supply of LPG in the entire country despite some companies’ divestment in the LPG industry, which is, as we understand are business decisions," Energy Secretary Jericho L. Petilla said.
The DOE's statement comes after LPGMA Rep. Arnel Ty warned of a possible shortage and a spike in cooking gas prices in the coming weeks, due to Pilipinas Shell's decommissioning of the LPG import terminal in March.
Isla LPG Corp., which bought Shell's LPG business and re-branded it as Solane, refuted Ty's statement about an impending shortage. Shell's sale of its LPG business to Isla did not include the terminal which is also located inside the Tabangao refinery compound of Pilipinas Shell.
"We at Isla LPG Corporation would like to assure our customers that we have adequate supply of LPG products and storage facilities. We work very closely with our LPG suppliers to ensure the steady supply of both our local and imported LPG products. We have in place a supply plan to address developments in the market," Toshihisa Fuse, Isla LPG chief executive officer, said.
The DOE said that Solane has already contracted its requirements with Liquigaz in Bataan to fill the supply gap due to the SGEI facility closure.
The DOE said it will continue to monitor developments in the industry to ensure there is sufficient supply in the market.
Meanwhile, the DOE said if the international price of LPG is lower for February compared to January, then there will be a corresponding rollback in the domestic prices of LPG next week.