Petron to upgrade refinery to meet clean air standards

MANILA, Philippines - Petron Corp., the country’s largest oil refiner, will modernize and expand its refinery to meet global clean air standards, including the upgrade to Euro 5-compliant fuels.

The company recently unveiled the second phase of its refinery expansion program (RMP-2) during the commemoration of its Bataan refinery’s 50th anniversary.

The country’s oil firms are presently offering only Euro 2-compliant products. In Europe, all oil companies have been carrying Euro 5 products.

The project – the company’s biggest and most ambitious investment to date – is targeted for completion towards the end of 2014.

“The decision to undertake this massive project was borne out of the vision to make Petron’s Bataan refinery among the best in Asia,” Petron chairman and CEO Ramon S. Ang said.

“From a national perspective, this major investment underscores our belief in the country’s prospects and our strong commitment to significantly contribute to nation-building.”

RMP-2 will further enhance the country’s supply security, increase Petron’s capability to supply the increasing demand for white products (LPG, gasoline, and diesel) and petrochemicals.

Once completed, RMP-2 will enable Petron to “digest” a wider range of crude oils, including from African sources, giving it greater flexibility to source cost-efficient crude types from any part of the world.

Petron’s operational efficiency will also significantly improve since the project allows the full “conversion” of all remaining black streams into high-margin white products and petrochemicals. This means that the company can run its refinery 100 percent without incurring penalties from producing low-value fuel oil. For instance, the project will increase current propylene production by nearly 200 percent. The project doubles Petron’s refining complexity, enabling it to compete more effectively with refineries in the Asia-Pacific region.

Another benefit from RMP-2 is the local production of fuels that meet the global clean air standard of the future - Euro 5, further improving air quality in the country.

Petron will partner with leading global technology and engineering companies focused on refining and petrochemical production namely Axens, UOP, CBI Lummus, Foster Wheeler and Daelim.

“The RMP-2 project supports Petron’s strategic initiatives, namely our retail network expansion program, the integration of our petrochemicals business, and increasing our presence in the export market. These are aimed at ensuring its growth momentum over the long-term,” Ang added.

As of end-2010, the company has over 1,700 service stations – by far the largest in the country.