Philippine Refinery Margins Deteriorate Amid COVID-19, an Industrial Info Market Brief

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Pilipinas Shell Petroleum Corporation, the second-largest oil company in the Philippines, is shutting down its refining operations for a month beginning May 15. This was brought about by a drastic decline in local demand and a significant deterioration in regional refining margins due to the impact of COVID-19.

As a cash-conservation measure, the company will perform maintenance and use the plant to import products, thereby assuring the country that they will comply with the Philippines' minimum inventory requirements. Should market conditions improve, the refinery will retain the flexibility to start up immediately for the subsequent economic recovery of the Philippines from the crisis.

While not shutting down, the biggest refiner in the country, Petron Corporation, also has reduced production as a safety measure.

Industrial Info is tracking more than $500 million in active projects from Petron Corporation and Pilipinas Shell. Click here for a list, and see map below.