Conserving our Scarce Resources: Petron tops SMC’s WATER FOR ALL project

In 2010, the Petron Bataan Refinery (PBR) initiated Project CODy through the Corporate Technical Services Group (CTSG)-Environment. This initiative aimed to establish our water footprint for us to better understand our water usage, thereby allowing us to identify opportunities for possible reuse and recycling before water treatment and disposal. By managing our water resources more effectively, we were able to achieve three important goals simultaneously. Firstly, we conserved water by minimizing and optimizing its use in our Refinery operations. Secondly, we significantly reduced our water consumption to ensure that our surrounding communities could continue to enjoy the same scarce resources. And thirdly, we realized cost savings by using less water. Our approach to water management allowed us to achieve these three objectives, contributing to the sustainability of our operations and the well-being of our surrounding communities.

In 2010, the full implementation of Project CODy resulted in system-wide savings of 14.4% in water usage, equivalent to PHP 9.7 million in savings for Petron due to reduced water extraction from our own deep wells. Our initiatives also included reducing raw water consumption in the condensable blowdown drum, an essential part of our Refinery's gas relieving system, and routing stripped water to the Flue Gas Desulfurizer (FGD) unit. As a result, we were able to decommission two deep wells that provided groundwater for our Refinery operations, helping to enhance the water supply in our fenceline barangays Alangan and Lamao. The completion of Petron's Refinery Master Plan 2 (RMP-2) in 2014, along with new water reduction programs, helped lower the Refinery's Water Consumption Index by 44%, from 1.74 to 0.97. This brought the water footprint of the Refinery within the lower range of typical US refineries. A component of the RMP-2 project is the construction of the desalination plant which supplies around 23% (equivalent to 2,830,185 m³) of the total water demand of the Refinery in 2022 and helps us prevent groundwater depletion and saltwater intrusion.

Project CODy is an innovative environmental initiative that has enabled Petron to join forces with San Miguel Corporation's WATER FOR ALL program, making it even more significant. The program was launched in 2016 with the aim of drastically cutting down the conglomerate's group-wide water consumption by half by 2025. According to SMC President and CEO Ramon S. Ang, "Water is a precious resource, not just for San Miguel, but for all of us. We have continued to work towards improving water use efficiency across all our businesses as we confront the challenges of water scarcity." By participating in this program, Petron is actively contributing to this worthy cause and doing its part to conserve water resources for a sustainable future.

Specifically, the SMC WATER FOR ALL program seeks to reduce our scarce water consumption by 20% in 2020 and by 50% in 2025 compared to the 2016 baseline level, by implementing water consumption reduction programs and promoting the use of infinite water sources. The program is crucial in mitigating the effects of our operations on water resources and ensures their sustainable use for future generations. The SMC Water for All program is a testament to our commitment to sustainability and responsible resource management.

Petron willingly accepted the SMC WATER FOR ALL challenge, despite already having initiatives in place to optimize our water consumption. However, we were determined to not only meet but exceed its target. The Refinery went a step further by implementing low-investment programs to further reduce our domestic water consumption. These initiatives include the installation of Dual Flush Toilets, Sink Urinals, and aerators in faucets. Additionally, the Refinery aims to reuse rejects from Continuous Electrodeionization (CEDI) for non-critical water applications and from Drinking Water Purification for Laboratory wash area for cleaning sample bottles by 2024. PBR is also exploring several relatively more capital-intensive projects, such as Wastewater Effluent Recycling and Rainwater Harvesting for firewater and raw water applications to help meet the WATER FOR ALL target. Petron's Terminal Operations nationwide have also been doing their part in improving their respective water footprints. They have invested in rainwater collectors to harvest rainfall for use in non-critical functions such as toilet water, housekeeping, and maintenance of plants. By implementing these initiatives, Petron is taking an active role in conserving water resources for a sustainable future.

Petron's collective efforts to reduce water consumption have already led to significant progress towards meeting our reduction goals. From 2016 to 2022, we saved a total of 17.28 million m³ of water, the highest among all SMC subsidiaries. Our Terminal Operations rainwater harvesting program alone collected 58 million liters of rainwater since 2017, equivalent to the monthly consumption of 1,945 households. For 2022, we used around 17,000 m³ of rainwater for non-essential chores, equivalent to the monthly consumption of 567 households. The Refinery also played a significant role in SMC's group-wide water savings in terms of absolute volume, generating 1.97 million m³ in 2022, more than any other SMC facility. Before the pandemic hit in 2019, we had already exceeded our 2020 target reduction with a 27.09% reduction in scarce water consumption. This achievement was largely due to the Seawater Desalination Facility of the Refinery and our Operations Group's leadership in rainwater harvesting, with rainwater collectors installed in all terminals nationwide. In recognition of our efforts, 23 Petron terminals nationwide were among SMC's top 48 facilities in the WATER FOR ALL project in 2022 with 15.29 million m³ of water saved or 55.8% of the conglomerate's total accumulated water savings. While we had already implemented many low-investment programs, we also plan to invest in more capital-intensive projects, such as Wastewater Effluent Recycling and Rainwater Harvesting, to help achieve the WATER FOR ALL target. Our commitment to conserving water resources remains steadfast, and we will continue to take action towards creating a sustainable future for all.

Despite the challenges posed by the COVID-19 pandemic, including the temporary shutdown of our Refinery, we are proud to report that Petron had the highest total volume accumulated water savings among all of San Miguel Corporation's operating units until 2022. Overall, Petron has contributed 51.31% to the total volume of scarce water conserved since 2017, and 32.12% of the total volume of scarce water conserved in 2022.

As the largest oil company and sole refiner in the country, we recognize the importance of practicing sustainability and reducing our water consumption to address the increasing demand and threat to groundwater supply and availability. Therefore, we are committed to implementing programs to reduce water consumption and explore alternative resources beyond groundwater. Regardless of our size or scale, we will continue to build on these initiatives to promote positive change and to become better stewards of the environment.