FPIC admits Makati oil leak came from pipeline

By Jose Rodel Clapano (The Philippine Star) Updated October 30, 2010

MANILA, Philippines - After four months of trying to downplay the issue, the First Philippines Industrial Corp. (FPIC) finally admitted yesterday that the oil leak in Barangay Bangkal is coming from its pipeline.

In a joint press conference with Makati Mayor Junjun Binay, FPIC president Leonides Garde said they closed the pipeline at 11 p.m. Wednesday out of the company’s concern to occupants of the West Tower condominium in Bangkal, Makati and other residents in the area. The leak was first detected on July 12.

“Our pipe has signs of leaks. We are giving top priority to the safety of the residents in the area. We are closing our pipeline while we are trying to identify the main source of the leak,” Garde said.

Garde said it may take them two to three days to finish pinpointing the exact location of the leak in FPIC’s pipeline and plug it.

He said the leak in its pipeline could have been caused by construction activities done by various government agencies on the roads surrounding West Tower and Barangay Bangkal, particularly the one located at the ramp of the Magallanes flyover along Osmeña Highway.

Garde also downplayed speculations that the FPIC’s pipeline could have developed cracks because it was constructed in 1969, 41 years ago.

“Very few people know that we are quietly saving the public since 1969. Gasoline for land transportation and methane gas for airplanes are being transported from the Pandacan oil depot to Batangas plants through our pipeline. This is an unfortunate incident. Worldwide, there are older pipelines than our pipelines aged 60 to 70 years old. We will see what we can do. This is unexpected and an isolated case,” Garde said.

Binay said he is giving the FPIC ample time to identify the main source of the leak in its pipeline and plug it. He said he is banking on the FPIC’s assurance that it will not turn its back on its obligations to the affected residents of West Tower and Barangay Bangkal.

He said possible sanctions against the FPIC are not yet on the radar system of the city government.

“We are following plans. Let’s look first for the source of the leak. Plug the leak to stop the seepage, clean up the area. We are asking for understanding. We want to return the unit owners of West Tower before Christmas. That is our target. They have been away from their units for a long time ago,” Binay said.

Binay said the city government is collating all the information gathered and the studies conducted by the city’s engineering department.

“We would like to assure the public that there is a lesson to be learned from this incident,” Binay said, adding that damages against FPIC will be an issue once the leak is plugged.

Department of Energy (DOE) Undersecretary Glorietta Ison said at least 50 percent of Metro Manila’s oil supply will be affected, and they “will mobilize trucks for the delivery of oil products in Metro Manila.”

Meanwhile, Deputy Presidential Spokesperson Abigail Valte said Energy Secretary Rene Almendras stated that the supply of oil would be stable despite the leak.

“They already have contingency measures in place such as the use of tankers from Batangas,” Valte said. She also allayed fears that fuel prices would be affected by the incident. – With Donnabelle Gatdula, Aurea Calica