Shell sees robust volume for bitumen business

MANILA, Philippines — Shell Pilipinas Corp. wants to retain market dominance in the bitumen business as it expects to end the year with double-digit growth in sales volume.

Allan Canedo, Shell country business manager for the construction and road sectors, said they are hoping to achieve a volume improvement of over 10 percent this year.

He said Shell wants to sell 40 to 45 kilotons (KT) – equivalent to 40 million to 45 million kilograms – of bitumen this year, topping 2023’s 36 KT.

Bitumen, a by-product of fuel refineries, is used in manufacturing asphalt for roads and bridges, among others.

“We are trying to respond to the increase in demand because of the forthcoming election next year,” Canedo said, noting that the company is seeing strong market demand for bitumen nationwide.

As of end-May 2024, Shell had the largest market share of imported bitumen at 37 percent, leading Petron (25 percent), Phoenix (14 percent) and Unioil (nine percent).

The company is importing bitumen from Singapore, Taiwan, South Korea, Thailand and Malaysia. It has storage facilities in Batangas and Cagayan de Oro.

“We are the price leader in the market. We have a competitive advantage in the location of our (facility),” Canedo added, also citing technical advantages among competitors.

This year, Shell is looking at supplying bitumen at the Newington Plant in Bohol and the JasMig Plant in Batangas and Coron, Palawan.

It has also identified four major airport projects – Laoag, Tacloban, Puerto Princesa and M’lang – to supply polymer-modified bitumen, a variant of bitumen with plastic content.