Pilipinas Shell defers refinery expansion

Pilipinas Shell Petroleum Corp. has decided to put off the planned expansion of its Tabangao refinery in Batangas province, Philippines. [Pilipinas Shell] has decided to cease further work on the current study and will therefore defer any major investment decision for the Tabangao refinery in the foreseeable future, Edgar O. Chua, the company’s country manager, said. Chua said the cost of raw materials and services have gone up tremendously, raising the overall expense to between US$1 billion and US$3 billion. Chua said that the company would instead look at different options as an alternative plan in running and maintaining its Tabangao refinery, with its initial public offering (IPO) anchored on the plan to be adopted. (January 22, 2007)