Petron sets P 3.3-B expansion of Bataan power plant | Inquirer Business

Petron sets P 3.3-B expansion of Bataan power plant

With the country’s sole crude oil refinery operating again in Bataan after half a year of economic shutdown, Petron Corp. is gearing up to expand its 140-megawatt generator on site with a P3.3-billion power plant project lined up.

Petron said in a disclosure that the project, construction of which was scheduled to wrap up in the second half of 2022, would add 44 MW to bring capacity to 184 MW.

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Petron’s power plant is designed to generate electricity as well as steam needed by the Limay refinery.

The company said the expansion project would use lower-cost feedstock—in particular, petcoke, a solid by-product of petroleum refining—instead of more expensive fuel oil.

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Funding for this project is expected to be raised from a planned P18-billion bond offering, which would be the first tranche of a P50-billion shelf registration that Petron is applying for with the Securities and Exchange Commission.

Also to be funded from the first-tranche proceeds is the redemption of P13 billion in five-year retail bonds that are maturing this October.

Petron also wants to cover a total of P1.72 billion in bilateral long-term loans from several banks including BDO Unibank Inc., Bank of the Philippine Islands and UnionBank of the Philippines.

The net proceeds from the planned first-trance offer of P17.78 billion fall short of the P18.02 billion total for the intended purposes. INQ

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TAGS: Business, Petron
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