PTT's Philippine refinery on hold

PTT Public Company Ltd., Thailand’s biggest energy firm, has delayed plans to build an oil refinery in the Philippines, citing unattractive returns. PTT earlier announced it was exploring the possibility of putting up a US$2-billion refinery in the Philippines, in line with efforts to further expand its operations in Southeast Asia. “The refining business is not attractive to us because of small margins,” PTT’s Vice President for Aviation and Marine Marketing Thawansak Krapong said. PTT has not decided on whether the company would push through with its partnership with the PNOC Exploration Corp. for a gas pipeline project that will run from Batangas province to the capital of Manila. The company is continuing its planned expansion of its retail network in the Philippines, however. It plans to invest as much as Php3 billion (US$65.5 million) over the next five to 10 years to build 100-200 gas stations nationwide, each costing an estimated Php15 million (US$0.3 million). PTT currently has 16 gas stations in the country. (July 2, 2007)