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.
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.
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