Petron Corp. launched the construction of a co-methyl ester plant with an annual capacity of 180,000 tons beside the company’s 180,000-barrel-per-day refinery in Limay, Bataan.
Petron president Ramon Ang said the CME plant would help address the anticipated increase in biodiesel demand once the CME blend is raised to 5 percent from 2 percent.
“We have started [construction]. It will also take a long time to construct—about two years before completion. Capacity is 180,000 tons per year,” Ang said in an interview during the launch of San Miguel Corp.’s battery energy storage system in Limay.
“It can handle up to 5 percent of the requirement of the future…This will result in a more reliable supply,” Ang said.
Petron earlier said the CME plant would eliminate dependence on third-party suppliers and provide higher margins for diesel.
The Securities and Exchange Commission approved the amendment to Petron’s incorporation papers in January that would pave the way for it to own a biofuels facility.
“The proposed amendment will allow the company to construct and operate a coco-methyl ester plant and secure relevant permits, therefore,” Petron said.
Petron included production of biofuels in the company’s primary purpose.
Petron is the Philippines’ largest oil company, operating the sole oil refinery that is capable of providing nearly 40 percent of the country’s petroleum requirements. The company has over 2,000 service stations nationwide.
Petron posted a consolidated net income of P6.7 billion in 2022, up 9 percent from P6.1 billion in 2021 despite navigating a volatile industry environment.
Sales volume from local and international operations increased for the second straight year to 112.81 million barrels, up 37 percent from 82.24 million barrels in 2021.