SMC to build new oil refinery worth ₱1 trillion

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Metro Manila (CNN Philippines, June 13) — San Miguel Corporation (SMC) on Tuesday revealed its plans to build a new petrochemical refinery in the country, worth ₱1 trillion.

SMC President and Chief Operating Officer Ramon Ang also disclosed during the conglomerate's stockholders' meeting that the project will be built "somewhere in the South."

"Mas stable kasi ang petrochemical products. Ang pricing nila tsaka margin, cracking margin, is more stable and more profitable. And of course, malaki rito yung domestic consumption and napakalaki din ng export potential," Ang said.

[Translation: Petrochemical products are more stable. Their pricing and margin, cracking margin, are more stable and profitable. And of course, a big part will be the domestic consumption and the huge export potential.]

He clarified the refinery will be managed by a totally new company and not by Petron, the conglomerate's oil business.

San Miguel said it is looking to partner with two foreign groups for the 1000-hectare project, but they have yet to reach a final agreement.

Ang revealed the groundbreaking for the new refinery will happen in six months, and will be operational in three and a half years.

The new refinery will be San Miguel's biggest investment this year.

The conglomerate aims to triple its 2016 net income of ₱52 billion by year 2020.

SMC also says it is on track with its other projects including the new airport in Bulacan and the tollways that will connect the South Luzon Expressway to Tagaytay and Lucena, Quezon.

Ang said they will finish several projects next year, including the new passenger terminal at Boracay's airport and the Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension to Rosario, La Union.

Other SMC projects include the Skyway 3 connecting Magallanes and Balintawak, which Ang said will be finished by 2019, and the Metro Rail Transit-7 that will connect San Jose Del Monte, Bulacan to North Avenue in Quezon City.