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Shell's Philippines unit to suspend refinery operations for one month

Published 05/05/2020, 09:59 AM
Updated 05/05/2020, 10:00 AM
© Reuters.
SHEL
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PCOR
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SHLPH
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MANILA, May 5 (Reuters) - Pilipinas Shell Petroleum Corp
SHLPH.PS said on Tuesday it will shut down its
110,000-barrel-per-day Tabangao refinery in the Philippines for
one month from mid-May as the coronavirus pandemic has hammered
oil demand.
"In response to the drastic decline in local product demand
and the significant deterioration of regional refining margins
brought about the COVID-19 pandemic, the company will
temporarily shut down its refinery operations for approximately
one month starting mid-May 2020," the unit of Anglo-Dutch energy
firm Royal Dutch Shell RDSa.L said in statement.
Pilipinas Shell said it will continue to comply with the
government's minimum inventory requirement during the shutdown
of the refinery in Batangas City, south of the capital Manila.
Manila and some parts of the main island of Luzon as well as
a few other Philippine provinces will remain under "enhanced
community quarantine" until May 15 to curb the coronavirus
spread.
"The temporary shutdown will help insulate the company from
further potential drops in refining margins and will also aid in
its cash conservation initiatives," it said, adding that it can
switch to importation of petroleum products if necessary.
Philippines President Rodrigo Duterte on Monday temporarily
increased tariffs on imported crude oil and refined petroleum
products to fund measures aimed at mitigating the economic
impact of the coronavirus outbreak. The Tabangao facility is one of the two refineries in the
Philippines. The country's largest refiner Petron Corp PCOR.PS
operates a 180,000 barrel-per-day facility in Bataan province,
also in Luzon.


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