Isla LPG allots P450M for capex, plans expansion

Isla LPG Corporation has set aside P450 million for capital expenditures this year, with plans to expand its liquefied petroleum gas operations nationwide, according to a company official. The amount is more than twice the P200 million the company allocated for capex in 2012. "We will come up with a new refilling plant in Calamba. We will also spend for the LPG tanks," Isla LPG chief operating officer Ramon del Rosario told reporters. Isla LPG, which acquired Shell's LPG business in the Philippines last year for $131 million, sells the LPG brand Solane (formerly Shellane). It is currently second to Petron Corp. in terms of household LPG. The new refilling plant will cost from P30 million to P50 million and will have a capacity of 350 to 650 metric tons. The company's expansion plans may also include the addition of 10 more distributors to its current total of 50. The company is also working with property developers such as Megaworld and Ayala to introduce LPG-fired water heaters in their developments. It is in talks with several firms to convert their boilers to LPG as well. Isla LPG Corporation is the joint venture between Itochu of Japan and Citadel Holdings, Inc. of the Delgado Group. — BM, GMA News