Petron $3.5b expansion in Malaysia to boost capacity by 90,000b/dJanuary 1, 2018
Petron Corporation, the Philippines based company engaged in refinery and distribution of fuel in Malaysia, expects its refinery expansion in the country to cost a whopping US$3.5 billion, adding 90,000 barrels a day to its capacity.
Petron Malaysia Refining & Marketing Bhd operates Petron Port Dickson refinery, which has a capacity of approximately 88,000 barrels per day. The expansion plans are expected to be completed in two years, reported the Rappler.com website.
Petron Malaysia has a range of petroleum products, including gasoline, diesel, liquefied petroleum gas, industrial and commercial fuels, as well as aviation fuels.
The firm’s fuels are distributed from 8 depots and terminals. It operates over 560 retail service stations across the nation and is number 3 in market share.
In 2012, Petron acquired a 65% stake in Esso Malaysia Berhad (EMB).
During that year, Petron also signed a deal to buy subsidiaries ExxonMobil Borneo Sdn Berhad and ExxonMobil Malaysia for $404 million, bringing its total transaction to $610 million.
“The business in Malaysia is going well. We bought it when its EBITDA [earnings before income tax depreciation amortization] is $20 million. This year (2017), we will end at $270 million in EBITDA,” Ang said.
“With the expansion, it should give us $600 million a year from $20 million,” said Ang.