Exclusive right
Under the agreement, Petron will have the exclusive right to design, construct, operate and maintain the airport’s on-site fuel depot.
The project involves the construction of a fuel storage facility with a capacity of three 477-kiloliter tanks and is scheduled for completion in the third quarter of 2027.
Commissioning will comply with the latest Joint Inspection Group (JIG) standards for aviation fuel safety and quality.
The facility is expected to strengthen fuel supply reliability at BPIA, which currently consumes about 102 kiloliters of aviation fuel daily, including 43 kiloliters for international flights and 59 kiloliters for domestic operations.
Five days’ worth of fuel storage
Once operational, the permanent fuel farm will provide at least five days’ worth of fuel storage, improving supply security and airport operational efficiency.
“This milestone agreement underscores our commitment to modernizing the Bohol-Panglao International Airport,” said Aldwin Uy, general manager of ABAC.
“By partnering with an industry leader like Petron, we are securing a resilient, world-class fuel infrastructure that will ensure operational efficiency, and safely accommodate the growing aviation demands of the Bohol.”
Open-access environment
ABAC said the agreement also requires fuel facility rates to be regulated by the airport operator to maintain an open-access environment and prevent supplier discrimination should other fuel providers enter the BPIA market.
Petron, the country’s largest oil company and the only remaining refinery operator, already operates the fuel farm at Mactan-Cebu International Airport, which ABAC said would help ensure a seamless transition and efficient implementation of the Bohol project.
“Petron is proud to expand our strategic partnership with Aboitiz InfraCapital through this vital infrastructure project. We are bringing our extensive operational expertise to BPIA, ensuring that the new fuel farm is built and operated in strict accordance with the latest JIG standards to provide a safe, reliable, and seamless fuel supply chain,” said Jonathan F. Del Rosario, vice president for Operations and Corporate Technical Services Group of Petron.
ABAC said it has also formed a dedicated local management team in Tagbilaran to oversee project execution and keep construction on schedule.
