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LEADING
refining and marketing company Petron Corp. marks
another first when it inaugurates the
Philippines’
first petrochemical feedstock facilities on April 9 at
its 180,000-barrel-per-day refinery in Limay, Bataan.
The Petro Fluidized Catalytic Cracking (PetroFCC) unit
and Propylene Recovery Unit (PRU) are part of the
company’s Refinery Master Plan, which will enable it to
further diversify into the petrochemical business and
sustain its growth.
The
PetroFCC, the first “cracking” unit of its kind in the
world, converts black products (fuel oil) into
higher-value LPG, gasoline and diesel. More important,
it yields a higher level of the petrochemical feedstock
propylene than typical FCC units. The PRU further
purifies the propylene so it can be used to make various
petrochemical products—in turn, the ingredients for
manufacturing everyday items such as food packaging,
appliances, suitcases, furniture, DVDs and even car
parts.
The
PetroFCC has a conversion capacity of 19,000 barrels per
day, while the PRU will produce 140,000 metric tons of
propylene annually.
“The
inauguration of these facilities underpins our strategic
transformation program which aims to broaden our markets
and give us new high-value revenue streams. This is the
first major step in our diversification into the
petrochemicals business and signals a shift in our
growth strategy,” president Kamal M. Al-Yahya said.
For some
years now, Petron’s mixed xylene production has been a
major contributor to the company’s bottom line. The
increase in its petrochemical feedstock production is
expected to further boost income. Petron posted a net
income of P6.4 billion in 2007, or a 6.3-percent
increase over its 2006 profits.
The
PetroFCC and the PRU are core components of the
company’s $300-million Refinery Master Plan Phase 1,
which also includes a BTX unit that would produce
aromatics, namely, benzene and toluene, as well as
increase mixed xylene production. The BTX unit is
scheduled for completion by early 2009.
Petron’s
first tender for the off-take of polymer-grade propylene
for six months was won by Mitsui Co. Ltd. Mitsui is one
of the largest Japanese trading houses with a strong
global presence in petrochemicals. With strong
logistical support, it trades propylene in
Asia, including
the
Philippines.
The first propylene lifting of 1,500 MT from Petron by
Mitsui was done on April 1.
Petron’s
petrochemical-feedstock units represent the company’s
second major investment in three years at its
180,000-barrel-per-day Bataan Refinery. In early 2005
Petron inaugurated its $100-million Clean Air facilities
to comply with strict environmental standards. This made
Petron the only oil company in the country capable of
producing compliant fuels to meet its requirements
without resorting to imports.
“From a
national perspective, this major investment underscores
our belief in the country’s growth prospects and our
commitment to contribute to the national economy. These
new refinery units will boost the local petrochemical
industry and benefit other vital downstream
manufacturing sectors,” said Petron chairman and CEO
Nicasio Alcantara.
In an
earlier disclosure, Petron said it is currently
evaluating Phase 2 of its Refinery Master Plan, which
aims to increase conversion capacity and petrochemical
feedstock production.
“We are
currently studying other options to further enhance our
Bataan refinery and consequently, unlock more value for
our shareholders,” Alcantara concluded. |
