Petron seeks Bataan terminal expansion

MANILA, Philippines — Petron Corp., the Philippines’ only remaining oil refiner, is seeking to expand its terminal in Limay, Bataan, as it moves to address rising fuel demand, particularly from the aviation sector.

The oil giant, chaired by tycoon Ramon Ang, has applied for environmental clearance to install additional storage tanks that would increase the terminal’s white fuel storage capacity to 32.79 million liters from the current 20.75 million liters.

 The expansion is intended to strengthen fuel reserves and ensure the uninterrupted availability of Jet A-1 fuel – the primary fuel used by commercial airlines and other jet-powered aircraft – even during periods of heightened demand or supply disruptions.

 Demand for Jet A-1 fuel within the Limay terminal’s service areas has grown significantly in recent years, Petron said in a document submitted to the Department of Environment and Natural Resources.

 At present, the facility’s fuel inventory can sustain operations for only about 3.4 days, a level the company considers insufficient to support a stable and reliable supply.

“Because the terminal serves as a key distribution hub for Jet A-1 fuel supplied to other terminals and airports, maintaining adequate storage capacity is essential to prevent fuel shortages that could disrupt aviation operations and related economic activities,” it added.

 Aside from increasing storage capacity, the proposed tanks will also serve as swing tanks, allowing fuel to be temporarily transferred while existing tanks undergo inspections, scheduled maintenance or emergency repairs.

This added flexibility is expected to enhance operational reliability and minimize the risk of supply interruptions.

 In addition to Jet A-1 fuel storage, Petron is also proposing the construction of a new aboveground storage tank for coconut methyl ester (CME), which supports compliance with the required biodiesel blend.

The government mandated a three-percent (B3) CME blend in 2024. The blend was supposed to gradually increase to B4 last year and further to B5 by October, but the hike was suspended due to high costs of coconut oil.

Under the Biofuels Act of 2006, all liquid fuels for motors and engines sold in the country should contain locally sourced biofuel components.

 For its proposed terminal expansion, Petron has yet to disclose the estimated cost of investment.

Petron’s Bataan refinery can process 180,000 barrels of oil per day, supplying about one-third of the national fuel demand.

Earlier this year, the Philippines’ largest oil company procured 2.48 million barrels of Russian crude supplies to augment the national fuel inventory and avert potential supply shortages.