The Bataan refinery has been shut since the first half of February and is currently undergoing maintenance, said market participants, although this could not be confirmed with Petron.
The company last year announced plans for a temporary "economic shutdown" at Bataan during the first half of 2021, citing weak refinery margins and "an uneven playing field between oil importers and refiners".
That announcement followed suggestions from Petron chief executive Ramon Ang in October that the refinery could be permanently closed unless the government provided a "level playing field" for the industry. A move by Manila last year to increase import taxes on crude to raise funds for Covid-19 spending has led to higher costs for refiners.
Petron said in late January that its refinery had been registered under the Freeport Area of Bataan, a free-trade zone. This registration "will help make our refining business more competitive and financially viable as soon as demand recovers," Ang said today. The company said it is looking forward to a "significant" recovery in demand in 2021.
Petron made a made a loss of 11.4bn pesos ($230mn) in 2020 as a whole compared to a profit of P2.3bn in 2019. Sales volumes fell by 27pc to 215,000 b/d over the period because of the impact of the pandemic, including what the company said was a historic slump in the second quarter. Petron also operates in Malaysia, where it owns the 88,000 b/d Port Dickson refinery.
Bataan is the Philippines' sole remaining refinery, after Shell closed its 110,000 b/d Batangas plant for conversion to an import terminal in August last year.
Philippines is a net importer of jet fuel, gasoline and gasoil and the maintenance closure of Bataan has intensified its import reliance, according to traders.
This article is reproduced at www.argusmedia.com
