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Limay, Bataan: Oil refiner Petron Corp. signed its
first offtake agreement for the supply of polymer-grade propylene to
Japanese firm Mitsui Co. Ltd.
The oil firm yesterday formally
signed the agreement with Mitsui during the inauguration of its
Petro Fluidized Catalytic Cracking (PetroFCC) unit and Propylene
Recovery Unit (PRU) in its refinery in this province.
Mitsui initially bought 1,500
metric tons of propylene from Petron under the six-month supply
deal. Both companies, however, refrained from divulging the cost of
the transaction.
Mitsui is one of the largest
Japanese trading houses with a strong global presence in
petrochemicals. With competent logistical support, it trades
propylene in Asia, including the Philippines.
The PetroFCC, the first
“cracking” unit of its kind in the world, converts crude oil
into higher value liquefied petroleum gas (LPG, gasoline, and
diesel). It yields a higher level of the petrochemical feedstock
propylene than typical FCC units.
The PRU further purifies the
propylene so that it can be used in making various petrochemical
products that are used to manufacture everyday items such as food
packaging, appliances, suitcases, furniture, DVD’s and even car
parts.
Petron Chairman and CEO Nicasio
Alcantara said that although its initial petrochemical production
was sold to a foreign firm “the local manufacturing sector can now
depend on a local source for their raw materials and help them
compete at a competitive price.”
He added that Petron is currently
finalizing the succeeding phases of its proposed $300-million
Refinery Master Plan project, which includes the aforementioned
facilities, that aims to increase conversion capacity and
petrochemical feedstock production.
“We are currently studying
other options to further enhance our Bataan refinery and
consequently, unlock more value for our shareholders,” he said.
--Euan Paulo C. Añonuevo
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