Petron lets contract to expand capacity at Bataan refinery

Petron Corp., Mandaluyong City, Philippines, has let a contract to Honeywell UOP LLC to provide technology licensing for expanding and upgrading production capacity at the 180,000-b/d Bataan refinery at Limay, about 150 km southwest of Manila.

As part of the upgrading and expansion project, Honeywell UOP will deliver basic engineering design, technology licensing, and associated services for a condensate fractionation unit, naphtha hydrotreater, and its proprietary UOP CCR Platforming, Sulfolane, LPG and kerosine Merox, and distillate Unionfining units, the service provider said.

These technologies will enable Petron to meet rising domestic demand for motor fuels by upgrading 100,000 b/d of condensates and light crude oils to aromatics and automotive fuels, Honeywell UOP said.

Designed to help the country meet increased demand for cleaner-burning gasoline and diesel, the expansion project—which adds a second aromatics train at the site—will allow the refinery to produce 75,000 b/d of refined fuels and 1 million tonnes/year of aromatics, increasing overall production capacity of 55%, the service provider said.

With a population of 104 million people, the Philippines imported 46% of its gasoline, 59% of its diesel, and 69% of its LPG in 2017, Honeywell UOP said.

Details regarding a value of the contract or a timeframe for the proposed project’s completion have yet to be revealed by either Honeywell UOP or Petron.

This latest planned expansion of the refinery follows Petron’s previous completion of its $2-billion Refinery Master Plan 2 (RMP-2) upgrade project at Bataan that, initiated in 2011, added a total of 19 units to boost Bataan’s production capacities and make the plant more competitive in the Asia-Pacific region (OGJ Online, Oct. 14, 2014; Jan. 17, 2012).

During this year’s first quarter, the Bataan refinery hit its highest-ever utilization rate at 99%, or near full capacity, Petron said in its latest quarterly earnings report.

Contact Robert Brelsford at [email protected].