Shell eyes electricity sale via spot market

MANILA, Philippines - Pilipinas Shell Petroleum Corp. is eyeing to enter the business of selling electricity through the spot market to bump up its revenues.

Shell disclosed yesterday its board has approved the amendment of its Articles of Incorporation to expand its secondary purpose to include sale of excess electricity through the Wholesale Electricity Spot Market (WESM).

Shell operates a refinery in Tabangao, Batangas that produces its own electric power through turbines fueled mainly by natural gas.

It said its self-generation of electricity is covered by a certificate of compliance issued by the Energy Regulatory Commission (ERC).

Shell will seek shareholders’ approval during its annual stockholders’ meeting next month.

It will also need the endorsement of the Department of Energy (DOE) to engage in the sale of electricity.

In the country, Shell’s business mainly involves the production of fuel through its Tabangao refinery in Batangas, which produces 110,000 barrels a day of a full-range of products compliant with global Euro 4 fuel standards.

In 2003, Shell started bitumen production with a P80-million bitumen import, storage and distribution facility in Villanueva, Misamis Oriental.

Bitumen is one kind of residue from oil being used as a component for making asphalt.

In 2016, Shell invested $13 million to upgrade its Tabangao refinery to raise bitumen production to take advantage of the government’s aggressive infrastructure plans.