Port congestion delays Shell PH refinery upgrade
MANILA, Philippines – Continuing congestion at the port of Manila has allegedly delayed Shell Philippines’ refinery upgrade in Tabangao, Batangas.
Department of Energy Undersecretary Zenaida Monsada said that the upgrade “will be delayed by one quarter because [the] equipment [needed] cannot be released immediately.”
Monsada did not elaborate while Shell has not issued a reply yet when asked to comment on the matter.
The refinery produces an output of 110,000-barrel per day (bpd).
Shell announced the $100-150 million upgrade in 2014, saying it was in order to meet new Euro 4 diesel and gasoline standards required by the Department of Energy (DOE) to take effect in 2016.
Fuels that meet Euro 2 standards have 500 parts per million (ppm) of sulfur content while fuels meeting Euro 4 standards will only have 50 parts ppm.
Euro 4 standards is a globally accepted European emission standard for vehicles and require fuel to have significantly low amounts of sulfur and benzene.
Last year, Shell Philippines officials disclosed that the oil firm’s long delayed initial public offering (IPO) was dependent on a final investment decision (FID) on whether to push the refinery expansion or not.
The local subsidiary of Royal Dutch Shell Plc. earlier said that it intends to raise funds through the IPO to expand its refinery in Tabangao, Batangas.
Energy secretary Carlos Jericho Petilla previously said Shell officials confirmed the expansion.
"They are going to expand. Shell is adamant that there is still future in this country,” Petilla earlier said. – Rappler.com
Oil refinery image from Shutterstock