Business

Petron sets P 3.3-B expansion of Bataan power plant

With the country’s only crude oil refinery operating again in Bataan after a six-month economic shutdown, Petron Corp. ready to expand its 140-megawatt on-site generator with a P3.3 billion power plant project in line.

Petron said in a statement that the project, whose construction was scheduled to be completed in the second half of 2022, would add 44 MW to bring capacity to 184 MW.

The Petron power plant is designed to generate the electricity as well as steam that the Limay refinery needs.

The company said the expansion project would use cheaper raw materials – especially petcoke, a solid by-product of oil refining – instead of more expensive fuel oil.

Funding for this project is expected to come from a planned bond offering of P18 billion, which would be the first tranche of a P50 billion shelf registration that Petron is applying for with the Securities and Exchange Commission.

Also to be financed by the proceeds from the first tranche is the redemption of P13 billion. In five-year retail bonds maturing in October.

Petron also wants to cover a total of P1.72 billion in bilateral long-term loans from several banks, including BDO Unibank Inc., Bank of the Philippine Islands and UnionBank of the Philippines.

The net proceeds from the planned first-trance offer of P17,78 billion. NOK is less than P18.02 billion. In total for the intended purpose. INQ

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