Petron plans new $10bn oil refinery in the Philippines
The Philippines’ largest oil firm Petron Corp. wants to build a new refinery to aid a foreign partner in meeting the growing domestic demand for finished petroleum products.
According to Ramon Ang, president of Petron’s parent company San Miguel Corp., the new refinery would process up to 250,000 barrels of oil per day.
The facility would increase Petron’s total refinery capacity by 138% from the 180,000 daily barrels its Limay, Bataan, refinery is capable of putting out.
The Limay facility processes crude oil into petrol, jet fuel, industrial fuel oil, diesel, kerosene, liquefied petroleum gas, and lubricants.
“I hope to invite one of the big boys like Saudi Aramco or Kuwait Petroleum Corp. (KPC) to come and put up a new oil refinery,” Ang told Inquirer.net.
“A lot of large companies want to invest in a new oil refinery in the Philippines,” he added.
Another possible partner, Ang said could be Formosa Plastics, a Taiwanese group, whose petrochemicals unit is “ten times bigger that Petron”.
“Formosa is one of the biggest in the region. I went to visit them a couple of months ago, and we are in talks to look for more business together. If we can convince Formosa to invest, immediately we should put up one [new refinery],” Ang added.
He estimated that a 250,000-barrel-per-day oil refinery would cost at least $10 billion (€9.4bn) to build.
The new refinery could be located in either Bicol or Cebu region, as both have good logistical connections, and Cebu also possesses a large local market for petroleum products.