Shell's pipelines will be shut down

Shell's pipelines will be shut down

MANILA (AFP): The operator of the Pilipinas Shell Petroleum
Corp. liquefied petroleum gas (LPG) pipeline to Manila is to shut
it down for maintenance, prompting energy officials yesterday to
immediately move to allay fears of a supply crunch.

The Department of Energy (DOE) said in a statement that the
First Philippine Industrial Corp. (FPIC), which operates the
pipeline for Shell, has informed DOE Secretary Delfin Lazaro of
its decision, but did not give a date when the shutdown will
occur.

"According to FPIC, the company is scheduled to undertake a
detailed survey of the white product pipeline," the statement
said. LPG is the fuel widely used by most Philippine households
for cooking.

The pipeline runs from Shell's loading facility in Tabangao
town, Batangas province, about 90 kilometres (56 miles) south of
the capital, to a central depot in downtown Manila's Pandacan
district.

Neptali Franco, director of the DOE's Energy Industry
Administration Bureau, said the shutdown could last for four
months, during which shipments of about one million liters
(260,000 gallons) of LPG per month through the linkage would be
suspended.

Franco told reporters he will meet FPIC officials on Wednesday
and industry suppliers on Thursday "to discuss contingency
measures."

Franco said he will convince major LPG suppliers Caltex
Philippines Inc. and Petron Corp. to increase LPG sales to
independent dealers while the pipeline is being serviced in order
to maintain the supply level. Shell also would bring LPG to
Manila through other means, he added.

Coffee price
starts declining

LONDON (Reuter): London coffee and cocoa prices were easier at
the midday close yesterday, squeezed by technical selling and a
general lack of fresh news, traders said.

Coffee lost $12 to $2,270, basis second month, extending
yesterday's declines on steady commission house selling ahead of
notice day in the U.S tomorrow for deliveries to the exchange.

"We're drifting lower on New York's heels as people tidy up
positions," said one trader.

News from New York of a fall in Brazilian differential coffee
stocks brought no relief. "We hoped it might be taken positively,
but there's just no interest," said one trader.

Another trader said: "It is a case of moods. Right now, the
market lacks enthusiasm to do anything, so it shrugs off news
that, in a bullish phase, would be an extra excuse to buy."

Cocoa was also dull. The second position ended the morning
session down 10 stg at 1,012 stg, off a low of 1,007 stg.

"We were due down because of New York. Much of the weakness is
coming from funds liquidating long positions in a range of
commodities," said one cocoa trader.

"The lack of volume suggests the professionals are content to
sit back and wait for fresh fundamental news," he added.

Traders said New York was providing what little sense of
movement there was.

"We tend to see more volume in the afternoon as London reacts
to New York's opening moves," one said.

Fresh market-moving news on the West African cocoa crop might
not emerge for several weeks yet, traders said.

"In the meantime, we are likely to stay in the hands of the
funds," one added.