SMC said it is looking at North Harbor’s offshore areas, which would provide the ideal location for an oil tank farm.

“San Miguel’s affiliate, Petron, thus is very keen on the investment as well,” the conglomerate said.

Petron Corp., along with Pilipinas Shell Petroleum Corp. and Chevron Philippines, operate oil storage tanks in Pandacan.

Oscar Sevilla, PPA general manager, confirmed SMC’s new oil storage plan. “They [SMC] said they will look for a suitable area that will comply with safety and security regulations,” he said.

The Manila City government earlier ordered the closure of the depot, citing security and environmental concerns. While it has since reversed its position, various non-government groups have been protesting the continued stay of the oil depot in Pandacan, citing its proximity to residential areas and the Pasig River.

The Pandacan depot supplies 1,800 retail stations in Metro Manila and outlying provinces, 70 percent of the shipping industry’s fuel requirements, 90 percent of lubricants nationwide and 75 percent of the airline industry’s aviation fuel needs.