MANILA, Philippines - Oil companies may soon have an oil storage hub near Manila Bay with project proponents already in the planning stage, the Energy department said last week.

Energy Undersecretary Jose M. Layug, Jr. told reporters a company is planning to build a new oil hub outside the Pandacan oil depot but is still in the early stages of planning.

“There had been a lot of talks lately about an oil hub outside Pandacan.

[The project proponents] are looking at different areas, maybe Manila Bay. They’re going to reclaim the area and build an oil storage hub,” said Mr. Layug.

The hub will have foreign and local investors, he said.

Mr. Layug did not disclose the name of the company planning the hub.

Three oil companies, Pilipinas Shell Petroleum Corp., Chevron Philippines, Inc. and Petron Corp., use the Pandacan oil depot in Manila.

Petron has expressed its intention to move out of Pandacan to the Manila North Harbor “for logistical reasons.”

The Pandacan oil depot has been under fire from civil society groups for potential danger to people living near the facility.

The three oil companies are in the process of choosing an international risk assessor to conduct surveys on the safety and pollution situation in the oil depot.

Even without the third party risk assessment, the oil companies may continue to operate in Pandacan since the companies were allowed by the Manila city government to stay in the area back in 2009.

That year, Manila Mayor Alfredo S. Lim upheld Manila City Ordinance 7177 which allows the oil firms to continue their operations in Pandacan, citing tax revenues collected from the oil companies.

The Department of Energy said the project proponents are conducting a feasibility study.

“They’re looking at the volume that all oil companies now have for storage, as well as those stored at Pandacan and whether they can convince the oil companies to [relocate ]to them,” said Mr. Layug.

Independent oil players will also be invited to use the oil storage hub, he said.