Shell plans bitumen facility in Batangas

MANILA, Philippines – Pilipinas Shell Petroleum Corp. is putting up a bitumen production facility adjacent to its refinery in Batangas to take advantage of the government’s aggressive infrastructure plans, its top official said.

“Certainly, the bitumen facility is expected to be up and running probably in two to three years,” newly appointed chair Cesar Romero told reporters.

Bitumen is one kind of residue from oil that is being used as a component for making asphalts. Shell is the largest bitumen distributor in Asia-Pacific.

The new facility, which will rise in Tabangao, Batangas, is in line with the Duterte administration’s high infrastructure spending plans.

“As we all know, infrastructure is a priority in the country. It allows us to participate more in the road building,” Romero said.

In 2003, Shell opened an P80-million bitumen import, storage and distribution facility in Villanueva, Misamis Oriental to firm up its leadership in the asphalt market.

The facility includes a 4,000-metric ton (MT) storage tank and a 150-MT tank with a throughput capacity of 72,000 MT per annum.

It was followed in 2008 by a Bitumen Solutions Center to become an avenue for learning and sharing knowledge on bituminous products and road pavement solutions.

Romero said the bitumen production facility is also meant to add value added to the company, especially with the expected influx of investors, following its going public.

Shell listed on the PSE last Nov. 4, raising P18.4 billion from an offering of 291 million shares.

“Bitumen would be about a reasonable chunk of money, but I think because we are still scouting, and it’s ready for some engineering works, it’s a bit sensitive for me to give an amount,” he said.