Petron unveils ambitious refinery expansion plan

Targeted for completion by 2014, Petron Corp. on Wednesday said it has unveiled its most ambitious investment to date – a refinery expansion project (RMP-2) that commemorates the Petron Bataan refinery’s (PBR) 50th anniversary. "The decision to undertake this massive project was borne out of the vision to make Petron Bataan Refinery among the best in Asia," Petron Chairman and CEO Ramon S. Ang said in a statement. "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 enhance Petron’s capability to supply the increasing demand for petrochemicals and white products such as LPG, gasoline, diesel. This will enhance the country’s supply security of petroleum products. Once completed, RMP-2 will enable Petron's Bataan Refinery to "digest" a wider range of crude oils, including those from African sources, giving it greater flexibility to source cost-efficient crude oil types from any part of the world. Petron's operational efficiency will also improve significantly since the project will allow 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. The project will increase current propylene production by nearly 200 percent. RMP-2 will double Petron's refining complexity, enabling it to compete more effectively with refineries in the Asia-Pacific region. Best of all, RMP-2 will enable local production of fuels that meet the global clean air standard of the future – Euro 5. This will improve the country’s air quality, according to Petron. Petron will partner with companies Axens, UOP, CBI Lummus, Foster Wheeler, and Daelim – leading global technology and engineering companies focused on petrochemical production and refinement. "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 said. By the end of 2010, the company already had over 1,700 service stations – by far the largest in the country. The country's fuel demand is expected to increase as the economy continues to grow. — AY/VS, GMA News