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.