The Bohol-Panglao International Airport (BPIA) will have a permanent on-site jet fuel depot by the third quarter of 2027, ending its reliance on trucked-in supply and giving BPIA at least five days of fuel cover, after its operator awarded the project to Petron Corp.
Aboitiz InfraCapital Bohol Airport Corp. (ABAC) has signed an agreement with the oil firm for the design, construction, and operation of a new Jet A-1 fuel farm at the airport, backed by a projected capital expenditure of P340 million.
Petron emerged as the top-ranked bidder following an evaluation under a Request for Proposals (RFP), which grants the winner exclusive rights to design, build, operate, and maintain the on-airport depot.
The facility will consist of three tanks with a storage capacity of 477 kiloliters (KL) each, or 1,431 KL in total. Commissioning will be carried out in accordance with the latest Joint Inspection Group (JIG) standards, the global benchmark for aviation fuel handling.
BPIA currently burns through 102 KL of jet fuel a day: 43 KL for international operations and 59 KL for domestic flights. The airport has no permanent bulk storage on site. ‘This milestone agreement underscores our commitment to modernizing the Bohol-Panglao International Airport,’ ABAC General Manager Aldwin Uy said. ‘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 the Bohol.’
The agreement stipulates that applicable facility rates will be regulated by ABAC rather than set by the fuel supplier.
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The airport operator said the arrangement is meant to preserve an open-access environment and prevent supplier discrimination should other fuel suppliers enter the BPIA market later.
Fuel farm exclusivity arrangements at regional airports have historically drawn complaints from airlines over into-plane charges, a recurring point of friction in the local aviation industry.
Petron, the country’s largest oil company and its only remaining refiner, already owns and operates the fuel farm at the Mactan-Cebu International Airport (MCIA), which is likewise part of the Aboitiz InfraCapital airport portfolio. ‘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 (JIG) standards to provide a safe, reliable, and seamless fuel supply chain,’ Petron VP Jonathan F. Del Rosario said.