Aboitiz InfraCapital Bohol Airport Corporation (ABAC) officially signed an agreement with Petron Corporation (Petron) for the design, construction, and operation of a new Jet A-1 Fuel Farm with investments of PHP340 million at the Bohol-Panglao International Airport (BPIA).
Following a comprehensive evaluation process, ABAC said Petron was selected as the top-ranked partner to spearhead this essential aviation infrastructure development, modernizing the existing fuel farm in BPIA.
Under the terms of the Request for Proposals (RFP), Petron will hold the exclusive rights to design, build, operate, and maintain the on-airport fuel depot in BPIA.
The partnership will unlock significant infrastructure upgrades for the regional gateway, driven by Petron’s superior into-plane services and proven supply capability.
Backed by a projected capital expenditure (CAPEX) of PHP340 million, the facility’s development will include the construction of a robust 3 x 477 KL storage capacity. Targeted for completion in Q3 2027, the project ensures adherence to global quality and safety, as all commissioning activities will be executed in strict accordance with the latest Joint Inspection Group (JIG) standards.
The new fuel farm is designed to address BPIA’s growing operational demands, which currently require 102 KL of fuel daily (43 KL for international operations and 59 KL for domestic flights).
The construction of a permanent on-site fuel farm will ensure fuel supply reliability by establishing a minimum 5-day storage capacity and enhancing overall operational efficiency.
Strategic synergy
The partnership with Petron, the country’s largest oil company and only remaining refinery, guarantees a highly seamless transition. The collaboration will also leverage Petron’s proven track record at the Mactan-Cebu International Airport (MCIA), where the company currently owns and operates the existing fuel farm.
“This milestone agreement underscores our commitment to modernizing the Bohol-Panglao International Airport,” said Aldwin Uy, General Manager of Aboitiz InfraCapital Bohol Airport Corporation. “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.”
To future-proof the airport operations and ensure and protect airline partners, the partnership agreement will mandate that all applicable facility rates be regulated by ABAC. This ensures an open-access environment and prevents supplier discrimination in the event that additional fuel suppliers enter the BPIA market in the future.
“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,” said Jonathan F. Del Rosario, Vice President for Operations and Corporate Technical Services Group (CTSG) of Petron Corporation.
To guarantee the project’s smooth implementation and adherence to the timeline, a dedicated local management team in Tagbilaran has been appointed to oversee the upcoming execution and construction phases.
