Petron's Mixed Xylene Plant Goes Onstream

December 17, 1999 PSE CIRCULAR FOR BROKERS NO. 3221-99 December 15, 1999 PETRON'S MIXED XYLENE PLANT GOES ONSTREAM Petron Corporation announced recently that work on the country's first Mixed Xylene Plant (MXP) has been completed. The MXP is located at its Petron Bataan Refinery in Limay, Bataan. It is currently undergoing test runs prior to full utilization. cdll The P161 million plant will produce 3,200 barrels per day of mixed xylene or about 165,000 metric tons per year. Project construction began in November 1998 and was completed on November 25, 1999, ahead of the January 2000 estimated completion date. The latest addition to the Refinery will pave the way for Petron to venture to other market niches. Mixed xylene is used as a raw material for the production of paraxylene, which is used for polyester production. Polyester uses include fibers, which account for 72 percent of demand worldwide, PET bottle resin (22%) and films (6%). Both the fiber and PET bottle markets are growing since clothing and containers are basic commodities that respond to small increases in income. Petron Chairman and CEO Jose A. Syjuco said, "The MXP will open an additional market for Petron's refinery products in Asia and at the same time. enable the Company to maintain a higher level of refinery utilization." Estimates indicate that Asian mixed xylene production capacity by 2001 will be about 14 million tons, still with a deficit of about 600,000 tons based on total projected requirement. Petron's annual production will partially fill up this deficit. cdll In addition, the MXP will reduce the aromatics content of gasoline from the present level of 55 vol. % to 45 vol. % by January 2000 and finally down to 35 vol. % by 2003 as mandated by the Clean Air Act of 1999. prcd The MXP is the first of its kind to be constructed in the Philippines. While the unit is traditionally associated with petrochemical projects, Petron has taken the initiative to develop the plant to enable it to maximize the value of its products since mixed xylene commands a significantly higher price than gasoline. LexLib Mixed xylene is principally produced in the naphtha reforming process in refineries and in some petrochemical complexes.