Pilipinas Shell Petroleum Corp. continues to show progressive measures into its 2017 capital expenditures as the company is set to upgrade its refinery in Tabangao, Batangas to produce bitumen.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, the multinational oil and gas firm is shelling out $13 million (around P650 million) for the new and improved bitumen production facility as part of its two-to-three-year investment program in 2017.
Bitumen, a vital component for making asphalts, is a mixture of hydrocarbons obtained naturally from petroleum distillation.
Pilipinas Shell Country Manager Cesar Romero told the bourse that the said accession is well in line with the government’s infrastructure plans, which includes an expenditure of P7 trillion that would last until 2022 beginning next year to build new roads, railways, classrooms and farm facilities, among others.
The bitumen facility would also bring additional value to the company since its debut at the Stock Exchange last month, taking advantage of having listed its shares and plans for current and potential investors to see.
The company recently accomplished its refinery upgrade that allowed Shell to produce 110,000 barrels per day of Euro IV (PH) petroleum, which is the new Philippine National Standards’ grade for diesel and gasoline.
Pilipinas Shell, which uses the ticker ‘SHLPH’ on the local stock market, listed a 0.22% high to P68.20 per share on Wednesday.
Shell is the largest bitumen distributor in Asia. It has been operating in the Philippines for over 100 hundred years with nearly 1,000 retail stations nationwide, making it one of the leading oil companies in the country.