Shell completes first batch of locally blended bitumen

MANILA, Philippines — The local unit of energy giant Royal Dutch Shell has started production at its new bitumen blending facility in Batangas, making it the only bitumen supplier in the country with local manufacturing capability.

In a statement, Pilipinas Shell Petroleum Corp. (PSPC) said it has completed the country’s first-ever batch of locally blended bitumen.

With the commencement of bitumen production, the oil firm now has capacity to supply both local and overseas markets.

“Shell is now the only player in the Philippines with a local bitumen manufacturing facility. This facility adds to Shell’s strong regional network and will boost our supply reliability as we anticipate growth in demand for high quality bitumen not only in the Philippines but across the region,” said Thanes Rajatapiti, Shell bitumen regional general manager for Asia.

The company has invested P730 million in bitumen or asphalt production facility inside the Tabangao refinery in Batangas.

Shell is one of the global leaders in bitumen technology with locally available technical assistance to support special project requirements with strong focus on safety and professional account management.

With the facility being fully operational, PSPC now also offers the possibility of price risk management for contractors, helping them better manage their costs and have margin predictability amidst volatility in market prices.

Its new local manufacturing capability helps ensure consistent product quality, which minimizes the chances of re-work on projects due to off-spec products.

This translates to improved project output that fits the demands of their respective end users and supports the integrity and reliability of the contractors in getting the job done.

Improved supply reliability can also be expected due to  local production as it helps reduce the possibilities of stock-outs during high demand, minimizing the likelihood of delays which is essential for critical projects.

Shell Bitumen has been present in the Philippines for the past 15 years, working on key projects across the archipelago – from airports, to national highways, and other roads that benefit millions of Filipinos daily.

Bitumen is one kind of residue from oil that is being used as a component for making asphalts. Shell is the largest bitumen distributor in Asia-Pacific.