Petron wins ERC nod for ₱353-million grid connection
Ramon Ang-led Petron Corp. is moving forward with plans to connect its 184.4-megawatt (MW) Refinery Solid Fuel-Fired Boiler (RSFFB) project to the national grid by developing its own point-to-point facilities.
The Energy Regulatory Commission (ERC) approved Petron’s application to own and develop a direct connection to the Bataan Combined Cycle Power Plant – B (BCCPP-B) 230-kilovolt (kV) substation, which is operated by the National Grid Corporation of the Philippines (NGCP).
The connection project is valued at ₱352.8 million, an increase from the earlier estimate of ₱314 million.
“The subject facilities shall be developed and constructed in accordance with the System Impact Study (SIS), facility study (FS), and NGCP’s requirements listed on the FS review report,” the ERC stated, adding that both Petron and NGCP must comply to ensure the transmission system is not degraded.
The ERC clarified that the NGCP must operate and maintain the dedicated facilities to ensure the “reliability, adequacy, security, stability, and integrity of the grid.”
The RSFFB, located in Limay, Bataan, provides the steam needed by Petron’s expanded refinery. Petron acquired the project from SMC PowerGen Inc. in 2016.
“The steam produced also drives the turbine generators that generate electric power to sustain the refinery needs in processing crude oil into various petroleum products, including gasoline, diesel, LPG, jet fuel, kerosene, and petrochemicals,” the commission elaborated.
The RSFFB facility has been augmenting the grid's power supply since 2013, with excess power delivered through the spot market. Phase 3 of the facility has been operational since January 2023.
Petron recently reported that its nine-month net income grew to ₱9.7 billion from ₱7.1 billion, driven by higher sales volumes, improved refinery production, and reduced costs.
Despite this, refining margins fell by 11 percent from January to September because the cost of crude oil rose faster than fuel prices, shrinking its profit per barrel.