Petron sees higher export sales

Major oil refiner Petron Corp. expects a substantial improvement in its export performance this year with the commissioning of its petro fluidized catalytic cracker (PetroFCC) and propylene recovery unit (PRU), the first of their kind in the Philippines.

“The commercial operations of our PetroFCC and PRU units signals the dawn of Petron’s petrochemical age. This strategic transformation will broaden our markets and gives us new revenue streams to help us achieve a higher growth trajectory,” Petron president Kamal M. Al Yahya told reporters.

Declining to give details, Yahya said their exports would “hopefully” be better than what they have recorded last year.

“We hope that our more complex refinery facilities will give greater profitability for the company,” he said.

Yahya said they would also be tapping new markets for the produce of the PetroFCC facilities.

Petron currently supplies some of the petrochemical requirements of Taiwan and Korea.

“We are looking at selling to other regional markets, aside from Taiwan and Korea,” he said.

The two units, scheduled to start operating this month, is part of the company’s refinery master plan which will enable it to further diversify its business and sustain its growth momentum.

The PetroFCC, the first “cracking” unit of its kind in the world, will significantly improve operating efficiencies at the company’s 180,000-barrel per day output since it converts black products (fuel oil) to more high-value white products (LPG, gasoline, diesel) and enables the extraction of the petrochemical feedstock propylene. From the PetroFCC, the propylene stream is purified in the PRU which will produce petrochemical grade propylene.

The PetroFCC has a conversion capacity of 19,000 barrels per day while the PRU will produce 140,000 metric tons of propylene annually.

The PetroFCC and the PRU are core components of Petron’s $300-million refinery master plan which also includes a BTX unit that would produce aromatics (benzene and toluene), and increase mixed xylene production. The BTX unit is slated to be completed by the end of the year.

“From a national perspective, this major investment underscores our belief in the country’s growth prospects and our desire to contribute to nation-building. These new refinery units will hopefully jumpstart the local petrochemical industry and will result in exponential benefits for other vital downstream manufacturing sectors,” Petron chairman and CEO Nicasio I. Alcantara said.

The petrochemical feedstock will be used as raw material for various industrial applications such as automobile parts, electrical appliances, furniture, food packaging, PET bottles, suitcases, solvents and surface coatings.