Petron pre-commissioning $2-B refinery expansion

MANILA, Philippines - Petron Corp., the country’s biggest oil refiner, said its $2-billion refinery expansion is now in the finishing stages and pre-commissioning activities are already ongoing.

The $2-billion Refinery Master Plan Phase 2 (RMP-2) project will be in full commercial operations by early 2015.

Petron chairman and chief executive officer Ramon Ang said once completed, the refinery would be able to supply more premium fuels to consumers.

“RMP-2 underscores our commitment to nation-building. Once completed, Petron will be able to supply more premium fuels at a time when the Philippines is experiencing unprecedented economic growth. It further enhances supply security since it gives us the flexibility to refine crude oil from various sources,” Ang said.

The refinery expansion project would allow Petron’s 180,000 barrels-per-day Bataan refinery to run at full capacity. This, in turn, would convert current negative margin fuel oil into higher value fuels such as gasoline, diesel and petrochemicals.

Ang said the increase in the plant’s local production would help reduce the country’s dependence on imported fuel.

It would also transform the existing Petron Bataan Refinery (PBR) into one of the most advanced facilities in the region in terms of processing and energy efficiency, operational availability, and complexity, he said.

“We are keen to unlock the full potential of our entire value chain - from production to distribution to marketing,” Ang said.

With the expansion, Petron would be able to produce more stringent and environment-friendly fuels under the Euro-4 standard. Compliance to the globally accepted Euro-4 standard by 2016 is a mandate of the Department of Environment and Natural Resources (DENR).

Aside from the expansion, the company also has a Logistics Master Plan (LMP) that further integrates its extensive supply chain with the aim of serving customers’ fuel needs in the fastest, safest, and most cost-effective means.

This project includes the upgrade of existing facilities and the construction of new storage tanks in strategic locations, modernization of trucks, among others.