Petron sets aside US$1.3 billion for capital expenditures

Part of capex to fund expansion in Malaysia.

Petron Corporation, the Philippines’ biggest oil refiner and retailer, said its capex of US$1.3 billion for this year will further expand its local market share and widen its foothold in Malaysia.

Of the planned capex, 72% or US$920 million will go to the implementation of its Refinery Master Plan 2 that will upgrade its refinery in Bataan province in northern Luzon.

A 13% share or US$166 million will be used for the company’s cogeneration power plant project that will generate 140 megawatts by 2014. The US$500 million facility will be spent on the oil refinery’s current and expected future electricity and steam requirements.

When completed in 2014, the upgraded Bataan refinery will be able to produce pet coke that could be used as fuel for the refinery’s new cogeneration power plant. It will also make Petron the only oil company in the Philippines capable of producing Euro IV-standard fuels, the global clean air standard.

Some US$38 million will be used for the rebranding and refurbishing of Petron’s retail service station network in Malaysia. Petron is also set to invest US$42 million to enhance the facilities at its Port Dickson refinery in Malaysia. The new facilities to enable the refinery to use heavier, more sour crude oil and produce Euro 4M-standard fuels.

Petron expects Port Dickson to begin rt producing Euro 4M-standard fuels by the second half of 2015.