Shell broadens its bitumen market reach to Vietnam

Pilipinas Shell Petroleum Corporation, a publicly-listed firm, has expanded its presence in the bitumen market by entering Vietnam. This move allows the company to generate additional revenue from bitumen exports, which began in the final quarter of the previous year. Jose Jerome Pascual III, Shell’s Vice President for Finance, revealed that the company’s first shipment of finished bitumen within the ASEAN region was made to Vietnam during that period.

Bitumen, a by-product of oil refining, is primarily used for infrastructure projects like road surfacing and roofing. According to Pascual, their bitumen facility has the capacity to serve both domestic and international markets due to its size.

Additionally, the company is looking to boost profits by completing the installation of a hydrogen unit, which will enable the refinery to handle a broader range of crude oils, particularly the more affordable "sour" types. This upgrade is also expected to enhance the refinery’s bitumen output for local and regional distribution. Pascual pointed out that the hydrogen optimization will increase their production of both bitumen and diesel.

Cesar G. Romero, President and CEO of Pilipinas Shell, noted that the hydrogen unit, to be installed at the refinery in Tabangao, Batangas, will require an investment of ₱2.0 billion and is part of the company’s ₱6.0 billion capital expenditure plan for the year. The project is expected to be completed by the end of next year, with commercial operations starting by the first quarter of 2021. Romero emphasized that this development will enable the refinery to process a wider variety of crude grades, including potentially cheaper and more unconventional ones.

Furthermore, the company’s capital expenditures are focused on expanding its retail network, enhancing refinery operations, and upgrading its supply chain, which includes 27 terminals across the country.