Aboitiz InfraCapital Bohol Airport Corp. (ABAC), the airport's private operator, formally signed the agreement with Petron after selecting the oil company through a competitive request-for-proposals process.
Fuel infrastructure
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 total capacity of 3 x 477 kiloliters, backed by a capital investment of P340 million. The facility is scheduled for completion in the third quarter of 2027.
Once operational, the fuel farm will provide at least five days' worth of on-site fuel storage, replacing the airport's current setup and ensuring a more reliable and efficient fuel supply.
The airport currently consumes about 102 kiloliters of aviation fuel daily, including 43 kiloliters for international flights and 59 kiloliters for domestic operations.
Growing demand
ABAC general manager Aldwin Uy said the project forms part of the company's efforts to modernize Bohol's gateway and prepare it for increasing passenger and airline traffic.
"This milestone agreement underscores our commitment to modernizing the Bohol-Panglao International Airport. 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 Bohol," Uy said.
The new facility will be built and commissioned in accordance with the latest Joint Inspection Group (JIG) standards, the globally recognized benchmark for aviation fuel quality and safety.
Open access
ABAC said the agreement also promotes fair competition by requiring fuel facility rates to be regulated by the airport operator, creating an open-access environment should additional fuel suppliers enter the airport in the future.
Petron, the country's largest oil company and the only remaining refinery operator, also manages the fuel farm at Mactan-Cebu International Airport, experience that ABAC said will help ensure a seamless transition.
"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 Joint Inspection Group standards to provide a safe, reliable, and seamless fuel supply chain," said Petron vice president for operations and corporate technical services group Jonathan F. Del Rosario.
A dedicated management team based in Tagbilaran City has been formed to oversee the project's implementation and keep construction on schedule. —Ed: Corrie S. Narisma
