Petron to study feasibility of petrochem extraction facility

A $570,000 (P32 million) grant has been awarded by the United States Trade and Development Agency to Petron Corp. to partially fund a feasibility study for the construction of a petrochemical extraction facility.

The agreement between the USTDA and Petron was signed by Judy Reinke, counselor for commercial affairs of the US Embassy in Manila and Khalid D. Al-Faddagh, president and chief executive officer of Petron.

According to the USTDA, the study will include a basic engineering design for the construction of a new benzene-toluene-xylene (BTX) recovery unit that will allow Petron to recover benzene and toluene, as well as increase its mixed-xylene production and recovery capabilities.

These petrochemicals will be extracted from Petron’s own gasoline component production and would further enhance the oil firm’s capability to meet more stringent gasoline quality requirements under the Philippine Clean Air Act.

The facility would also provide the company with the aromatic petrochemicals, BTX, which it can sell to domestic and regional markets.

It was not revealed how much Petron is shelling out for the study but the USTDA grant will supplement the company’s resources.

The petrochemicals are used in the production of hundreds of products, including polyester fibers, resins and films.

In its statement, the USTDA said that the grant is part of its efforts to advance economic development and US commercial interests in developing and middle-income countries.

"The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment," according to the statement.