PPPI said the acquisition of the 3.5-hectare property is part of the company’s plans to grow its logistics operations in the country, particularly in Southern Luzon, where it wants to establish an integrated petrochemical depot and terminal facility.

Dennis Uy, PPPI president and chief executive officer stressed that "the intended depot and terminal facility enhances both our storage and distribution capacities for high grade petroleum products including diesel, gasoline, fuel oil, Jet A-1 and selected chemical products for specific customers and industries."

He added the new facility will not only improve PPPI’s logistical capabilities but will also help streamline the company’s operations with regard to hauling and transport. In turn, he said, this would have an impact on the company’s balance sheet moving forward.

According to PPPI, Philippine petroleum demand is seen to grow from 2.3 percent to 2.5 percent over the medium-term, to be driven largely by transport fuels, such as diesel, gasoline, and Jet A-1 fuel. It added transport fuels, currently about 50 percent of domestic demand, are seen to remain dominant in the demand mix supported by favorable consumer spending, growth in trade activities and demographic trends.

"We may even consider making available our excess capacities to other petroleum companies as the new facility’s strategic location and accessibility to Southern Luzon market could also render better efficiencies for them," Uy added.

Meanwhile, the company also disclosed it is in negotiations for the lease of two more properties in Mindanao for use as oil depots and terminals. Both depots are intended to support the expansion of its operations in other regions in the Philippines, it said.

PPPI plans to spend some P160.5 million for its depot and logistic facilities, including P120 million for one 10-million liter terminal facility this year and the next. It also plans to allocate around P96.77 million to open at least 30 new service stations this year and 15 more in 2008.