Caltex spends $45 M for upgrading of facilities

Caltex Philippines Inc. has spent some $45 million for the upgrading of its refinery facilities.

The investment was made to meet the requirements of the 1999 Clean Air Act (CAA), which requires the phase out of leaded gasoline and the upgrading of unleaded gasoline to meet increased competition.

Caltex officials said the refinery had to upgrade and re-optimize to maintain octane quality in its petroleum products without the lead additive. That involved the removal of lower octane stocks from the gasoline blends and exporting these at a much lower price.

Then the refiner had to import gasoline under the CAA requirements to cover for the supply shortfall.

"The change in lead content resulted in loser revenues on volume exported and higher costs for volume imported with price ranges spread at between three to five dollars per barrel (P0.75 to P1.25 per liter)," Barry Ashman, Caltex general manager for retail, said.

Ashman said they expect to invest an additional $50 million for the reduction of aromatics/benzene to 35/2 volume percent which would require the installation of an isomerization plant in its refinery.