Petron petrochem projects to boost output in Philippines

24-Oct-05

Demand for petrochemicals is projected to grow at a pace of about 5% in the period from 2005-2015 in Philippines, unlike the slowing demand in the petroleum industry. Prices are also better for petrochemicals as compared to refined oil products. To benefit from this, Philippine oil refiner Petron Corp plans to undertake two projects to boost its petrochemicals output as it seeks to expand presence in the domestic market in the next five years. The projects are part of Petron's US$250 million plan to upgrade its 180,000 bpd refinery, located north of Manila Petron's board has endorsed the company's compliance with the conditions set by the government's Board of Investments for the grant of incentives for its projects to produce propylene, and for the extraction of benzene, toluene and double mixed xylene output. The company will remain focused in the next 5 to 10 years in developing refinery assets to capture the unique opportunities presented by the developments in the petrochemical industry. Due to the relatively mature fuels market, petrochemical feedstock production offers a complementary avenue for ensuring long-term growth and profitability.