Alexis Douglas B. Romero,
Published: Jul 05, 2007
The National Power Corp. (Napocor) has signed a contract with Pilipinas Shell Petroleum Corp. for the supply of P556 million worth of lubricating oil for the power generator’s power plants and barges.
Under the deal, Shell will deliver 6.5 million liters of engine lubricating oil to six power plants in the main grid and another 62 smaller plants and barges operated by the Napocor Small Power Unit Group.
Dennis S. Gana, manager of Napocor Corporate Communications Division, said, “we expect to save by as much as 30% because the price is already in the contract and therefore fixed. We will not be subject to price changes.”
Napocor said the volume represents 70% of its total requirement for lubricating oil from 2007 to 2009.
Power plants to be supplied by Shell include the Panay Diesel Power Plants 1 and 2; Power Barges 101, 102, and 103, all located in Panay, and Power Barge 104 in Davao City.
Napocor has allocated P1.14 billion for lubricating oil purchases.
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