Petron hopes to save Php1 billion with own power plant

Oil refining and retail giant Petron Corp. expects to realize Php1 billion (US$21.42 million) in cost savings with its planned power generation plant, according to a top company official. Emmanuel E. Eraña, Petron’s chief finance officer, said the firm is putting up a greenfield coal-fired power plant to service its own electricity requirements and manage its operating costs. The project, to be constructed within the company’s refinery compound in Limay, Bataan, is estimated to cost US$200 million over a three-year period beginning this year. The company is also looking to upgrade its refinery to higher conversion capability that will completely eliminate the production of low-value products such as fuel oil and increase the production of higher margin products. The project is estimated to cost around US$1 billion over a five-year period. (February 8, 2010)