Port congestion has started to take its toll on other businesses, including the ongoing refinery upgrade of Pilipinas Shell Petroleum Corp. in Batangas province.
Energy Undersecretary Zenaida Monsada said the completion of Shell’s refinery upgrade had been delayed by one quarter due to the port congestion.
Shell owns a 110,000-barrel-per-day refinery in Batangas, the country’s second largest after the Limay facility of market leader Petron Corp. Shell officials declined to comment when asked about the delay.
“Shell will be delayed by one quarter because equipment cannot be released immediately [due to port congestion],” Monsada said.
Shell has not announced a definitive timeframe for the completion of the upgrade. It said earlier it expected to finish the project in time for the 2016 implementation of ‘Euro IV (PH)’ grade diesel and gasoline set to take effect by January 2016.
The refinery upgrade may cost $100 million to $150 million. Shell’s modernized and upgraded refinery had been expected to be completed within the year.
Energy Secretary Carlos Jericho Petilla earlier said Shell’s decision to maintain and upgrade its refinery in Tabangao, Batangas, reflected its optimism on the Philippine economy.