Petron to start refinery expansion by next year
PETRON CORP. is expanding the capacity of its petroleum refinery in Limay, Bataan, which would bring its output to 270,000 barrels daily by 2019, its president said.
Ramon S. Ang, who is also Petron chief executive officer, said the San Miguel Corp. subsidiary has already acquired land near its existing facility, which will be used for the expansion.
“We will be adding another 90,000 barrels a day, so from 180,000 barrels a day, we will be hitting 270,000 barrels a day,” he told reporters.
Petron owns and operates a petroleum refining complex in the Bataan town with its own piers and two offshore berthing facilities. It also has a power plant that serves the needs of the refinery.
The company started in 2010 the Petron Bataan Refinery Master Plan Phase 2 Upgrade (RMP 2). Completed by the end of 2014, the upgrade turned the Bataan facility into a full conversion refining complex that can convert oil production into higher value products such as gasoline, diesel, jet fuel and petrochemicals.
So far, Mr. Ang said the refinery has been performing at optimum level. For instance, he noted production on both Dec. 17 and 18 stood at 179,000 barrels, while on Dec. 16 it reached its full capacity of 180,000 barrels.
“Napakaganda ng takbo [ ng Petron refinery],” he said. “Pabuti nang pabuti ang takbo.”
Mr. Ang said the capacity expansion project would start next year and should be completed by 2019.
The new production facility would be built on an adjacent land that Petron bought from private owners.
Aside from the refinery, Petron owns and manages an oil distribution infrastructure with 30 depots, terminals and airport installations and approximately 2,200 retail service stations in the Philippines, and 10 product terminals and more than 560 retail service stations in Malaysia.
Mr. Ang said the Petron refinery’s current performance is a far cry from its showing before the upgrade when it was producing only about 80,000 to 90,000 barrels a day.
As of September, Petron posted a consolidated net income of P11.8 billion, up 58% from the previous year’s P7.4 billion. It previously said its “impressive result” had been driven by focusing on highvalue segments and sustained sales volumes from its Philippines and Malaysian operations.
Combined sales volumes hit 80.2 million barrels in the three quarters to September, slightly higher than the 79.3 million sold in the same period in 2016.
Mr. Ang said Petron is among the SMC subsidiaries that are performing well so far this year.
“Lahat ng organic businesses of [ SMC] nagiging more stable na,” he said, citing in particular the food business and petroleum refining. “Pinakamahina is power kasi pabagsakan ng presyo, pero maganda sa bayan.”
Shares in SMC rose 1.84% to close at P110.80 each on Wednesday.