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Decision at a glance

Top move

Modular delivery (shop-fabricated process modules) is operationally real: a Prime‑G+ gasoline desulfurisation unit was delivered modularly and commissioned in Argentina, which shifts mobilisation effort, transport and acceptance risk offsite and into supplier-controlled phases

Key takeaways

Modular delivery (shop-fabricated process modules) is operationally real: a Prime‑G+ gasoline desulfurisation unit was delivered modularly and commissioned in Argentina, which shifts mobilisation effort, transport and acceptance risk offsite and into supplier-controlled phases.[1]
Regional terminal expansion is progressing: Shell is advancing a new import terminal in Cebu that will change local terminal options and which commercial counterparties control fuel handling and nomination mechanics for projects in the Visayas.[2]
For EPC/EPCM procurement the combined effect tightens two levers: modular modules concentrate fabrication, freight and mobilisation dependencies with vendors, while new terminal capacity re-maps pass-through fees and nomination points that suppliers can use in commercial negotiations.[1][2]

Why this matters for the category manager

Modular delivery (shop-fabricated process modules) is operationally real: a Prime‑G+ gasoline desulfurisation unit was delivered modularly and commissioned in Argentina, which shifts mobilisation effort, transport and acceptance risk offsite and into supplier-controlled phases. Regional terminal expansion is progressing: Shell is advancing a new import terminal in Cebu that will change local terminal options and which commercial counterparties control fuel handling and nomination mechanics for projects in the Visayas. For EPC/EPCM procurement the combined effect tightens two levers: modular modules concentrate fabrication, freight and mobilisation dependencies with vendors, while new terminal capacity re-maps pass-through fees and nomination points that suppliers can use in commercial negotiations. Operationally, modular execution reduces onsite hot‑work and labour exposure during commissioning, which can improve safety and shorten onsite schedules — buyers still need to verify factory acceptance testing and handover clauses

What changed

New: Axens and Raízen completed modular delivery and commissioning of a Prime‑G+ gasoline desulfurisation unit in Argentina (modular execution and offsite module delivery confirmed from article 1).
New: Shell Pilipinas publicly progressed a terminal expansion in Cebu with Therma Cebu Energy, adding another regional import facility that could be nominated for fuel arrivals (article 5).

Category impact

Cost / money

Modular builds shift cost exposure from onsite labour and rework into fabrication, freight and pre‑installation scope that buyers must price and audit during procurement.[1]
New regional terminal options can reallocate landed fuel economics — handling fees, storage charges and inland haul costs may become pass‑throughs or contractor billables depending on nomination terms.[2]

Supplier / commercial

Suppliers that deliver prefabricated modules gain leverage on mobilisation cadence and may demand shorter quote validity and binding commitments tied to module fabrication and shipping schedules.[1]
Terminal operators become commercial counterparties: suppliers may re‑nominate feed routes to the new Cebu facility and shift commercial terms toward terminal-driven pass‑through structures.[2]

Safety / operations

Reduced onsite fabrication and lower hot‑work during erection can improve commissioning safety metrics, but only if factory acceptance testing (FAT) and pre‑installation checks are robust.[1]
Increased import terminal activity increases vessel calls and transfer operations locally; projects must confirm berth windows, transfer procedures and yard handling to avoid rushed transfers that elevate safety risk.[2]

What to watch

Watch whether supplier bids split scope ambiguously between factory‑ready modules and onsite completion — unclear splits create downstream change‑order and mobilisation disputes.[1]
Watch whether existing contracts allow suppliers to unilaterally nominate the new Cebu terminal; nomination mechanics not yet reflected in agreements can shift pass‑through exposure unexpectedly.[2]

Category manager actions

Action detail for this brief

Today's priorities

Inventory active RFQs and awarded packages that reference modular deliverables or module installation and tag them for Category review of scope split and transport risk.

because modular delivery shifts mobilisation, transport and acceptance responsibilities offsite and unresolved scope splits create change‑order and mobilisation risk.

Due 3d

high

Ask Ops to list projects in the Visayas that plan imported fuel deliveries and confirm whether sites can accept cargos via the Cebu terminal conceptually.

because a new regional import facility can change which ports and terminals are nominated and that affects last‑mile acceptance and transfer safety planning.

Due 3d

high

Have Contracts prepare modular‑delivery clause templates covering FAT acceptance, transport risk transfer, short‑validity quote handling and mobilisation gates for module handover.

because moving critical scope into fabrication and transport phases requires contract clarity to avoid disputes and unexpected pass‑throughs during mobilisation.

Due 21d

high

Supplier radar

Hydrocarbon Engineering

high

Observed supplier signal

Suppliers that deliver prefabricated modules gain leverage on mobilisation cadence and may demand shorter quote validity and binding commitments tied to module fabrication and shipping schedules.

Commercial implication

Suppliers that deliver prefabricated modules gain leverage on mobilisation cadence and may demand shorter quote validity and binding commitments tied to module fabrication and shipping schedules.

Next step: Validate the source-backed signal with incumbents and alternates before the next award or pricing decision.

Hydrocarbon Engineering

high

Observed supplier signal

Terminal operators become commercial counterparties: suppliers may re‑nominate feed routes to the new Cebu facility and shift commercial terms toward terminal-driven pass‑through structures.

Commercial implication

Terminal operators become commercial counterparties: suppliers may re‑nominate feed routes to the new Cebu facility and shift commercial terms toward terminal-driven pass‑through structures.

Next step: Validate the source-backed signal with incumbents and alternates before the next award or pricing decision.

Negotiation levers

Lever

Inventory active RFQs and awarded packages that reference modular deliverables or module installation and tag them for Category review of scope split and transport risk.

Use when

because modular delivery shifts mobilisation, transport and acceptance responsibilities offsite and unresolved scope splits create change‑order and mobilisation risk.

Expected outcome

Prioritised list of packages with clear onshore vs offsite scope boundaries and recommended contract adjustments

high confidence

Lever

Ask Ops to list projects in the Visayas that plan imported fuel deliveries and confirm whether sites can accept cargos via the Cebu terminal conceptually.

Use when

because a new regional import facility can change which ports and terminals are nominated and that affects last‑mile acceptance and transfer safety planning.

Expected outcome

Site acceptance matrix showing feasible terminals and any transfer or berth constraints

high confidence

Lever

Have Contracts prepare modular‑delivery clause templates covering FAT acceptance, transport risk transfer, short‑validity quote handling and mobilisation gates for module handover.

Use when

because moving critical scope into fabrication and transport phases requires contract clarity to avoid disputes and unexpected pass‑throughs during mobilisation.

Expected outcome

Clause templates ready for insertion into open tenders and awards to reduce downstream disputes

high confidence

Talking points

Modular delivery (shop-fabricated process modules) is operationally real: a Prime‑G+ gasoline desulfurisation unit was delivered modularly and commissioned in Argentina, which shifts mobilisation effort, transport and acceptance risk offsite and into supplier-controlled phases.

Regional terminal expansion is progressing: Shell is advancing a new import terminal in Cebu that will change local terminal options and which commercial counterparties control fuel handling and nomination mechanics for projects in the Visayas.

For EPC/EPCM procurement the combined effect tightens two levers: modular modules concentrate fabrication, freight and mobilisation dependencies with vendors, while new terminal capacity re-maps pass-through fees and nomination points that suppliers can use in commercial negotiations.

Recommended actions

Do now

Inventory active RFQs and awarded packages that reference modular deliverables or module installation and tag them for Category review of scope split and transport risk.
Why: because modular delivery shifts mobilisation, transport and acceptance responsibilities offsite and unresolved scope splits create change‑order and mobilisation risk.
Owner: Category
Expected outcome: Prioritised list of packages with clear onshore vs offsite scope boundaries and recommended contract adjustments
[1]
Ask Ops to list projects in the Visayas that plan imported fuel deliveries and confirm whether sites can accept cargos via the Cebu terminal conceptually.
Why: because a new regional import facility can change which ports and terminals are nominated and that affects last‑mile acceptance and transfer safety planning.
Owner: Ops
Expected outcome: Site acceptance matrix showing feasible terminals and any transfer or berth constraints
[2]

Next few weeks

Have Contracts prepare modular‑delivery clause templates covering FAT acceptance, transport risk transfer, short‑validity quote handling and mobilisation gates for module handover.
Why: because moving critical scope into fabrication and transport phases requires contract clarity to avoid disputes and unexpected pass‑throughs during mobilisation.
Owner: Contracts
Expected outcome: Clause templates ready for insertion into open tenders and awards to reduce downstream disputes
[1]
Run a supplier and terminal shortlist refresh for fuel, terminal services and inland haul providers in the Philippines to map alternatives and identify preferred SLAs.
Why: because new terminal capacity changes supplier leverage and buyers need updated options to protect uptime and negotiate pass‑through terms.
Owner: Category
Expected outcome: Ranked supplier/terminal map with recommended SLA language and shortlist for upcoming RFQs
[2]

Watch

Update tender evaluation criteria for fuel‑dependent scopes to require explicit terminal SLA performance, nomination rights, and mobilisation gates tied to terminal acceptance.
Why: because shifting terminal networks and modular execution change where delivery reliability and mobilisation risk sit and tenders must price and allocate those obligations consis...
Owner: Contracts
Expected outcome: Revised tender matrix used in the next RFQ cycle that allocates terminal and mobilisation responsibilities clearly
[1][2]

What to watch

Watch whether supplier bids split scope ambiguously between factory‑ready modules and onsite completion — unclear splits create downstream change‑order and mobilisation disputes
Watch whether existing contracts allow suppliers to unilaterally nominate the new Cebu terminal; nomination mechanics not yet reflected in agreements can shift pass‑through exposure unexpectedly
Watch whether supplier bids split scope ambiguously between factory‑ready modules and onsite completion — unclear splits create downstream change‑order and mobilisation disputes.: Watch whether supplier bids split scope ambiguously between factory‑ready modules and onsite completion — unclear splits create downstream change‑order and mobilisation disputes
Watch whether existing contracts allow suppliers to unilaterally nominate the new Cebu terminal; nomination mechanics not yet reflected in agreements can shift pass‑through exposure unexpectedly.: Watch whether existing contracts allow suppliers to unilaterally nominate the new Cebu terminal; nomination mechanics not yet reflected in agreements can shift pass‑through exposure unexpectedly
Modular delivery (shop-fabricated process modules) is operationally real: a Prime‑G+ gasoline desulfurisation unit was delivered modularly and commissioned in Argentina, which shifts mobilisation effort, transport and acceptance risk offsite and into supplier-controlled phases
Regional terminal expansion is progressing: Shell is advancing a new import terminal in Cebu that will change local terminal options and which commercial counterparties control fuel handling and nomination mechanics for projects in the Visayas
For EPC/EPCM procurement the combined effect tightens two levers: modular modules concentrate fabrication, freight and mobilisation dependencies with vendors, while new terminal capacity re-maps pass-through fees and nomination points that suppliers can use in commercial negotiations
Operationally, modular execution reduces onsite hot‑work and labour exposure during commissioning, which can improve safety and shorten onsite schedules — buyers still need to verify factory acceptance testing and handover clauses

Market pulse

Index	Latest	Change	As of
Henry Hub Gas (NG)	3.12 /MMBtu	+0.00 (+0.00%)	Aug 26, 2026, 10:02 AM
Cheniere (LNG) (LNG)	185	+0.00 (+0.00%)	Aug 26, 2026, 10:02 AM
Brent Crude (BRENT)	74.89 /bbl	+0.00 (+0.00%)	Aug 26, 2026, 10:02 AM
Fluor Corp (FLR)	42	+0.00 (+0.00%)	Aug 26, 2026, 10:02 AM
KBR Inc (KBR)	58	+0.00 (+0.00%)	Aug 26, 2026, 10:02 AM

Brent Crude: Crude/fuel price moves affect refining margins and can shift tender timing and supplier pass‑through exposure for fuel‑dependent scopes
Henry Hub Gas: Natural gas price direction matters where gas‑fed EPC scopes rely on feed nomination and terminal or pipeline access; price swings feed into mobilisation and fuel pass‑through clauses

Evidence and sources

Inline citations jump here. Expand a source to read stored evidence excerpts.

[1] Axens supplies gasoline desulfurisation unit to Raízen in Argentina

hydrocarbonengineering.com · Aug 26, 2026

Original linkExpand

Source excerpts

As part of this project, the unit was delivered using a modular approach, with key process modules engineered and fabricated under Axens responsibility

This modular execution significantly reduced onsite activities and allowed faster project delivery compared to conventional stick-built units

Despite the challenges posed by the COVID-19 period, all modules were delivered and installed, enabling a safe, smooth, and accelerated start-up. This modular execution significantly reduced onsite activities and allowed faster project delivery compared to conventional stick-built units

Open original source

[2] Shell develop terminal expansion with Therma Cebu Energy

hydrocarbonengineering.com · Aug 25, 2026

Original linkExpand

Source excerpts

is progressing with a terminal expansion in Cebu, strategically located in the Visayas, the Philippines, to strengthen the availability of energy products and enhance supply chain resilience. This will be the 5th import facility in the network and will support more reliable delivery of fuels and other energy products for partners and customers

is progressing with a terminal expansion in Cebu, strategically located in the Visayas, the Philippines, to strengthen the availability of energy products and enhance supply chain resilience

The project will be delivered in collaboration with Therma Cebu Energy Inc

Open original source

[3] Brent Crude

finance.yahoo.com · n.d.

Original linkExpand

No stored excerpt is attached to this source.

Open original source

[4] Henry Hub Gas

finance.yahoo.com · n.d.

Original linkExpand

No stored excerpt is attached to this source.

Open original source

Adapt Procurement to Modular Builds and Expanding Terminal Networks

Decision at a glance

What changed

Category impact

Cost / money

Supplier / commercial

Safety / operations

What to watch

Action detail for this brief

Today's priorities

Supplier radar

Negotiation levers

Talking points

Recommended actions

Do now

Next few weeks

Watch

Top stories

Axens supplies gasoline desulfurisation unit to Raízen in Argentina

Shell develop terminal expansion with Therma Cebu Energy

Market pulse

Evidence and sources