Petron to expand Bataan terminal to boost aviation fuel capacity

PETRON CORP. is planning to expand the storage capacity of its Limay, Bataan terminal to boost aviation fuel supply and reduce the risk of shortages amid rising demand for Jet A-1 fuel.

In a filing with the Department of Environment and Natural Resources, Petron proposed increasing the terminal’s capacity to 32.79 million liters from 20.75 million liters.

The company said demand for Jet A-1 fuel within the terminal’s service area has grown significantly in recent years, leaving stock levels at about 3.4 days of supply, below the level needed to ensure stable and uninterrupted distribution.

“Because the terminal serves as a key distribution hub for Jet A-1 fuel supplied to other terminals and airports, maintaining adequate storage capacity is essential to prevent fuel shortages that could disrupt aviation operations and related economic activities,” Petron said.

The expansion plan includes the installation of additional storage tanks to hold fuel temporarily during maintenance or repair of existing tanks, improving operational flexibility and supply reliability.

Petron also plans to build an above-ground storage tank for coconut methyl ester (CME), a biofuel derived from coconut oil used in diesel blending requirements.

The company said the added biofuel capacity would help ensure compliance with government biodiesel mandates while supporting broader goals on renewable energy use, emission reduction and energy security.

“By increasing CME storage capacity, the terminal will be better able to maintain a consistent supply of biodiesel for blending, ensuring regulatory compliance while supporting the government’s goal of promoting renewable energy use, reduced greenhouse gas emissions and energy security,” it said.

Petron did not disclose the estimated cost of the expansion project.

The Limay terminal sits next to the Bataan Refinery, the country’s only oil refinery, which has a processing capacity of 180,000 barrels per day and supplies about 40% of domestic fuel requirements.

Amid global supply risks linked to the Iran war, Petron procured 2.48 million barrels of crude oil from Russia in March as part of an emergency response to supply chain disruptions.

The company said the procurement was made “out of extreme necessity as an extraordinary emergency measure in response to unprecedented geopolitical and supply chain disruptions.”

A public scoping session for the expansion project is scheduled on June 17 as part of the environmental impact assessment process, letting stakeholders raise concerns and provide input on the proposed development. — Sheldeen Joy Talavera