Manila's Petron to spend $1.8 bln to expand refinery

(Reuters) - The Philippines' Petron Corp will spend around $1.8 billion to upgrade its oil refinery in Bataan, northwest of Manila, as it seeks to boost long-term growth, chairman Ramon Ang said on Wednesday.

The country's top oil firm said the project will enhance the country's oil supply security and its capacity to meet the growing demand for white products such as liquefied petroleum gas, gasoline and diesel, and petrochemicals.

The expanded facility, which currently has a 180,000 barrel-per-day capacity, would allow Petron to "digest" a wider range of crude oils, including from African sources, Ang said at a company event at the refinery.

Petron, controlled by local conglomerate San Miguel Corp , buys most of its crude supply from Saudi Arabia.

Ang, who is also president of San Miguel, said the refinery upgrade supported Petron's strategic initiatives including its retail expansion programme and the integration of its petrochemicals business.

Shares in Petron rose 0.14 percent on Wednesday, underperforming the broader market's 1.09 percent advance. The stock has fallen 25.5 percent so far in 2011, while the broader market is up 0.3 percent. (Reporting by Erik dela Cruz; Editing by John Mair)



source: http://www.reuters.com/article/2011/04/06/petron-idUSL3E7F605B20110406

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