Leading oil firm Petron Corporation is now prepping up for the resumption of operations of its 180,000 barrels per day refining facility in Limay, Bataan by September 1 this year.
The company said it advised the Department of Energy (DOE) on the preparatory work it has been undertaking for its return to operation following its facility’s momentary shutdown since May 5 this year – a move precipitated by oil demand crash when stricter lockdowns had been enforced in the country because of the coronavirus health crisis.
The Limay refinery of Petron will be the lone player on petroleum manufacturing after its major rival Pilipinas Shell Petroleum Corporation opted out from that segment of the oil business.
Petron President and CEO Ramon S. Ang shared the view of all players in the sector that “none of us are immune to its adverse economic impact and we empathize with the entire industry in the face of our current challenges.”
When the oil firm temporarily ceased its refining operations in May, the company explained that it was a conscious choice on their part “to be more prudent in managing our resources, while ensuring that the needs of our customers are still met.”
It stressed that the plant shutdown had been intended to “mitigate the impact of low fuel demand and poor refining margins.”
Amid plummeting oil prices around that time, it was seen that importation or sourcing of finished petroleum products served to be a more expedient recourse for refiners – not just in the Philippines but even for players in other parts of the world.
Global experts noted refinery closures were more or less expected, following punishing collapse in demand, especially for aviation fuel, which had been classified as “the biggest loser” over the course of the pandemic.
At this point, Ang perceives the oil business climate still sailing on rough waters, and while Petron has not been spared, “we continue to be committed to serving Filipinos and doing our part in helping our country and economy manage the setbacks.”
With the country now pacing for economic recovery, Petron’s refinery could be its trump card when squaring up to competitive forces in the deregulated downstream petroleum industry.
The oil firm forked out US$2.0 billion investment for the upgrade of its refinery, which was completed and set on commercial operations in 2015. With that, the company was able to optimize production of high-value products from its facility.
On Limay refinery’s anticipated re-commencement run, Ang noted “ we will work to ensure our operations are efficient, maintain high product and service quality levels.”
And in the process, he stressed that the company would be able to “protect the jobs of our employees in every way we can, and continue to be a long-term partner in our country’s recovery and growth.”