MPIC to buy stake in Subic oil terminal


    Metro Pacific Investments Corp. (MPIC) has partnered with Keppel Infrastructure Trust (KIT) for the purchase of the Philippine Coastal Storage & Pipeline Corp. (PCSPC), the largest petroleum products import terminal in the Philippines based in Subic.

    MPIC said it is set to own 20 percent of PCSPC for $67 million, while looking to increase the stake to 50 percent.

    “Through this investment, MPIC will be able to diversify its portfolio and revenue streams in a new industry vertical with strong growth potential. PCSPC generates stable cash flows via take-or-pay contracts with high quality off-takers,” the company said in a statement.

    “With PCSPC accounting for 36 percent of the total import terminal storage requirements of the Philippines, MPIC sees this facility as vital energy infrastructure for the country. MPIC and its strategic partner KIT look forward to further expanding the capacity of PCSPC to provide millions of Filipinos with added energy security,” also said Manuel V. Pangilinan, MPIC chairman.

    PCSPC is the largest independent storage facility in the Philippines with a storage capacity of approximately 6 million barrels, when it completes an expansion in early 2021.

    The 150- hectare facility comprises of 86 storage tanks, two piers and a pipeline infrastructure connecting the entire facility. Strategically located in the Subic Bay Freeport Zone, PCSPC provides clients with a well-connected distribution hub to the largest economic catchment area – Metro Manila and North and Central Luzon.

    MPIC and KIT have been advised by Deutsche Bank, BPI Capital and NSQ Advisors (acting as financial advisors) and Clifford Chance and SyCip Salazar Hernandez & Gatmaitan, as legal advisors.

    KIT is the largest diversified infrastructure business trust listed on the main board of the Singapore Stock Exchange. KIT’s portfolio of infrastructure assets includes waste treatment, water desalination, power generation and transmission, piped gas production and retailing, and chemicals manufacture and distribution, which are primarily in Singapore and Australia.