Petron to spend $3.5B for Bataan refinery upgrade
PETRON Corp., the country’s largest oil refining and marketing company, plans to further expand the capacity of its oil refinery in Bataan by an additional 90,000 barrels per day (bpd) at an estimated cost of $3.5 billion.
Once completed in 2019 or 2020, the expansion will increase the refinery’s capacity to 270,000 bpd from 180,000 bpd currently, Petron President and Chief Operating Officer Ramon Ang told reporters.
The Petron Bataan Refinery (PBR), inaugurated in 1961, is an integrated crude oil refinery and petrochemicals complex located in the municipality of Limay. It processes crude oil into a full range of petroleum products including gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene, and industrial fuel oil.
The refinery also produces petrochemical feedstock benzene, toluene, mixed xylene, and propylene.
Last year Petron commissioned its upgraded refinery in Bataan. The upgrade cost $2 billion and significantly increased fuel and petrochemical production.
Petron supplies almost 40 percent of the country’s oil requirements and has a combined retail network of almost 2,900 service stations, more than a fifth of which are in Malaysia. Since 2012, the company has rebranded and built an extensive retail network of nearly 600 stations in Malaysia.
In November, the listed firm said it is evaluating the next phase of its “refinery upgrade and expansion aimed at increasing production of high-margin fuels and petrochemicals,” as well as expanding its logistics and retail network in the Philippines and Malaysia.
Petron exports different petroleum and non-fuel products to Asia-Pacific countries including India, Japan, Malaysia, Singapore, South Korea, Thailand, and Pakistan, as well as to the United Arab Emirates.