Petron to temporarily shut Bataan refinery mid-January

Petron Corp. on Tuesday said it will suspend the operations of its refinery in Bataan in the middle of January next year.

In a disclosure to the Philippine Stock Exchange, Petron confirmed that the “company will suspend operations at its Petron Bataan Refinery in Limay, Bataan beginning the second half of January 2021 to minimize losses in view of weak refining margins.”

“During this economic shutdown, the company will conduct maintenance activities on key process units,” the San Miguel-led petroleum company said.

Petron’s refinery is the country’s last operating petroleum refinery after Pilipinas Shell Petroleum Corp. permanently shutdown its refinery in Tabangao, Batangas City last October as its strategy from manufacturing to importation to sustain its business amid the economic impact of the COVID-19 pandemic.

Shell followed Chevron Philippines, which shutdown its oil refinery in Batangas in 2003.

Nevertheless, Petron assured that there will be no supply disruption due to the temporary shutdown of its 180,000-barrel-a-day oil refinery.

“There will be no supply disruption as a result of the shutdown given the healthy inventory of the company and the replenishment by the company of its supply through the importation of finished products,” it said.

Petron president Ramon Ang said the refinery shutdown is not permanent and operations will resume when the situation improves.

In the first nine months of 2020, Petron sustained a financial bleeding as it incurred a net loss of P12.6 billion from a net income of P3.6 billion a year earlier, blamed on the lower demand for petroleum products amid months-long lockdown due to COVID-19. -MDM, GMA News