Petron letting go of Bataan power plant

The Petron Bataan Refinery, the largest in the Philippines, processes crude oil needed for a full range of petroleum products like gasoline, diesel, kerosene and liquefied petroleum gas.

Petron Corporation is looking to divest anew its 140-megawatt solid-fired power plant in Limay, Bataan.

Under the MOU, SMC Global Power will conduct a preliminary review of the power plant and its operations over a six-month period to determine the feasibility of a possible acquisition.

The power plant supplies the power requirements of Petron’s 180,000 barrel-per-day refinery in Bataan.

Petron is the original owner of the PBR, which was then only 2×35 MW power plant. SMC Powergen first acquired the facility in 2013 and expanded its capacity to 140 MW in 2014. Petron reacquired the facility late 2016.

During the first half of the year, Petron’s net income dropped by 72 percent—P2.6 billion from P7.9 billion year-on-year—as volumes were dragged by higher costs of fuel due to the tax reform law.

Consolidated revenues amounted to P254.8 billion, down 7 percent from a year earlier.