PILIPINAS Shell is on track with the upgrade of its refinery in Batangas in time for the full implementation of the Euro 4 standard in January next year.
Pilipinas Shell country president Ed Chua said they are on schedule with the Batangas refinery upgrade, and that this could be completed before the end of the year.
“We are on schedule. Hopefully, we could finish the upgrade by the end of the year,” Chua told reporters.
Shell is expanding its 110,000-barrels per day (bpd) refinery in Tabangao, Batangas to meet new fuel standards that would take effect in 2016.
The Euro 4 standards require fuel to have significantly low amounts of sulfur and benzene. Euro 4 is a globally accepted European emission standard for vehicles.
At the same time, Chua said Shell will be importing Euro 4 fuel if the demand is beyond the plant’s refining capacity.
“Initially, we might import 20 percent of our total sales because that will be brought straight to Cagayan de Oro, our North Mindanao facility,” he said.
He said Shell’s import facility in Cagayan de Oro is expected to be completed by October this year.
“We will finish in advance because as originally planned, that will be completed by the end of the year, but the contractor is doing very well,” Chua added.
The Department of Environment and Natural Resources (DENR) has issued Department Administrative Order No. 2015-14 which accelerates the implementation of its directive in 2010 odering compliance with the more exacting Euro 4 emission standard.
Instead of the original January 2016 deadline, the DENR advanced the implementation to July 2015.
This means that starting July, oil companies should start selling Euro 4-compliant fuels, which are considered cleaner than the current Euro 2 standard that have been marketed since 2008.