The country’s leading oil distributor and refiner, Petron Corp., is preparing to invest more to nearly double its refining capacity in Malaysia to produce petrochemicals and aromatics.
Petron also intends to expand the capacity of its oil refinery in Limay, Bataan, Petron and San Miguel Corp. president Ramon S. Ang told reporters at the sidelines of San Miguel Pure Foods Co. Inc.’s stockholders meeting on Friday.
Ang said he had to leave right after PureFoods’ stockholders meeting to fly to Malaysia to talk to Malaysian officials about a “big” new investment there.
“Our refinery there, we will expand to produce petrochemicals and aromatics,” Ang said.
“The capacity of the refinery there is 80,000 [barrels per day]. We’ll make it about 150,000 barrels per day,” Ang said.
Petrochemicals are chemical compounds that can be made from oil or natural gas. They are produced using extreme temperatures and pressures, a process that requires large amounts of energy and sophisticated engineering.
Aromatics are hydrocarbons derived from petroleum, characterized by sweet or aromatic odor. The most common aromatics are used as chemical feedstocks, solvents and as additives to gasoline to raise its octane rating.
Ang declined to say how much investment was needed to fund this 46.7-percent capacity expansion in Malaysia, adding only that this would be a “big” investment.
Petron’s oil refinery in Bataan will likewise be expanded, Ang said.
“From 180,000 [barrels per day], we hope to expand it to 270,000 per day,” he said.
In the first quarter of this year, Petron chalked up a net profit attributable to equity holders of P5.2 billion, nearly double the P2.7 billion profit in the same period last year. Consolidated sales amounted to P106.41 billion, 38.4 percent higher than the previous year.
The profit growth was attributed to Petron’s strong focus on more profitable segments, production of higher margin fuels and petrochemicals, and operational efficiency.
Consolidated sales volume reached 26.2 million barrels (MMB) from previous year’s 25.3 MMB. —DORIS DUMLAO-ABADILLA