Philippines Refinery to Resume Operations, an Industrial Info Market Brief

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Following an "economic shutdown," the sole remaining refiner in the Philippines, Petron Corporation (PCOR), has confirmed its plans to resume refining at the 180,000-barrel-per-day Limay Bataan Refinery in the second half of 2021 after coming out with a definitive statement on March 9.

Previously citing an uneven playing field between oil importers and refiners, mainly due to multiple taxation by the Philippine government, the company achieved recognition and approval by the Authority of the Freeport Area of Bataan (FAB) in December 2020. FAB-registered enterprises are entitled to avail of fiscal incentives, which should mitigate and give some tax relief, on top of other cost-cutting measures being undertaken. The company also foresees significant demand recovery and hopes to be able to supply 40% of domestic demand again.

Petron Corporation is currently conducting maintenance activities on its key process units and concurrently upgrading their facilities, which include building a power plant.