Major oil players seek cheap sources of ethanol

Major oil players like Pilipinas Shell Petroleum Corporation (PSPC), Petron Corp. and Chevron Philippines, Inc. are in talks for possible sharing and importation of ethanol using an Isotanks operator in anticipation of the surge in demand in the next four to five months. At the moment, Shell, according to Country Manager Edgar Chua, has been selling ethanol in more than 100 of its retail stations and they intend to further increase it once they are able to find local suppliers. Petron Corp. has signed a supply agreement with Leyte Agri Corp., the first manufacturing plant in the country producing fuel-grade ethanol. The country’s demand for bioethanol is seen to reach 300 million liters per day (lpd) in 2009 and 600 million lpd in 2011. The countrys Biofuels Act of 2006 mandates an increase in biodiesel blend to 2% from 1% and 5% ethanol blend in gasoline starting 2009. (September 11, 2008)