By Wong Chin Hean
As the world rapidly transitions toward a low-carbon future, fossil-fuel-dependent economies are under increasing pressure to adapt. For the Philippines, where the oil and gas sector remains essential to energy security, the challenge is pressing. While upstream extraction and imports are key elements, the downstream sector—where crude oil is refined, processed, and distributed—plays an equally critical role. Much of the downstream infrastructure in the Philippines, however, is aging and in need of modernisation.
With the global energy transition moving swiftly, the question for the Philippines’ oil and gas sector is clear: How can existing downstream infrastructure be made more efficient and productive while reducing carbon emissions, without abandoning the valuable assets already in place?
The Need for Modernisation in the Philippines’ Downstream Sector
The Philippines’ downstream oil and gas infrastructure, including refineries, and processing facilities, is central to the nation’s energy supply. Yet much of this infrastructure, such as the facilities in Bataan and Batangas, has been operational for decades. These facilities rely on rotating equipment such pumps, compressors, and turbines that have long surpassed their expected lifespans, leading to inefficiencies, higher operational costs, and increased emissions.
Given the financial and logistical challenges of replacing this infrastructure outright, re-rating, reverse engineering, retrofits, and repairs offer practical alternatives to modernisation. These strategies ensure that existing equipment continues to meet modern performance standards and adheres to the Philippines’ increasingly stringent environmental regulations, particularly as the country seeks to align its energy policy with global climate goals.
Re-Rating Pumps and Turbomachinery for Greater Efficiency
Re-rating is the process of adjusting the operating parameters of existing equipment, such as pumps and compressors, to improve efficiency and reduce energy consumption. This involves reassessing the design specifications and making modifications to meet the changing needs of downstream operations or to comply with updated environmental regulations.
In the Philippines, where refining capacity must keep pace with rising fuel demand and align with national fuel quality standards, re-rating provides a cost-effective solution. Centrifugal pumps, commonly used in refineries and pipelines to process crude oil and refined products, can be re-rated to operate at lower energy intensities or to process new, lower-carbon fuels like biofuels. This type of optimisation allows the pumps to adapt to more energy-efficient processes without needing a complete replacement.
For the Philippines, re-rating is particularly valuable as the country seeks to balance the need for cleaner fuels with economic realities. By re-rating key components of downstream operations, refineries can boost efficiency, reduce emissions, and lower operational costs while avoiding expensive capital expenditures on new capital equipment.
Retrofitting: Overcoming OEM shortfalls
Many of the pumps, compressors, and turbines in the Philippines’ downstream oil and gas sector have been in service for decades and may no longer be supported by their original equipment manufacturers (OEMs). This is where retrofitting becomes essential, this involves analysing the original design of outdated equipment and recreating or enhancing it using modern materials and design principles.
An independent service provider with a localised footprint, deep expertise, and a service-focused set-up will be able to offer highly responsive engineering services equivalent to those offered by OEM. Often, OEMs have manufacturing-first set-up with fewer resources to cater for aftermarket services typically after the warranty expires.
For example, compressors at older refineries or storage terminals may have been built to meet the technical standards of the 20th century with OEM discontinuing spare parts and servicing. They are ill-suited for today’s efficiency and performance requirements. By leveraging the expertise of a highly competent independent rotating equipment service provider, by reverse engineering these compressors, operators can upgrade them with improved materials, better energy efficiency, and longer life spans.
This avoids the high costs and operational downtime associated with acquiring entirely new equipment as well as longer lead times associated with OEM support.
In addition to improving efficiency, retrofitting plays a key role in minimising environmental impact. By extending the life of existing equipment and reducing the need for new production, it helps limit waste and reduces the carbon footprint associated with manufacturing new machinery.
This approach is especially relevant in the Philippines, where the focus on reducing waste and managing limited resources is growing in importance.
Strategic Repairs and Retrofits: Extending Equipment Life While Reducing Emissions
Repairs and retrofits offer another vital strategy for improving efficiency in the Philippines’ downstream oil and gas sector. Pumps and turbomachinery, critical for processing crude oil and refined products, are susceptible to wear and tear over time. Cavitation, corrosion, and leakage are common problems that reduce efficiency and increase emissions.
Targeted repairs, such as upgrading pump cartridge and impellers, can restore aging equipment to peak performance and extend its lifecycle. These repairs help reduce energy consumption by extending equipment lifespan to reduce procurement of new equipment which contributes to higher supply chain emissions, minimise leaks, and improve overall reliability—leading to both environmental and economic benefits.
Retrofits, which involve upgrading older equipment with modern technologies, can further enhance performance. For example, refineries in the Philippines can upgrade their turbines or compressors with more advanced sealing systems or embark on re-rate to adapt to changing process requirements or enhance performance, yielding significant efficiency gains.
Retrofitting steam compression turbines with modern blade designs can lead to higher energy efficiency, lower fuel consumption, and reduced greenhouse gas emissions. These efforts are especially critical in the country, where energy demand is increasing and the push for sustainability is becoming more urgent.
A Path Toward Low-Carbon Operations
As the Philippines continues to navigate its energy transition, the downstream oil and gas sector faces growing pressure to become more sustainable. While the reliance on aging infrastructure may seem like a challenge, it also presents an opportunity.
By leveraging re-rating, reverse engineering, and repairs, the sector can modernise cost-effectively, reducing emissions and improving efficiency without the need for massive capital investments. By focusing on efficiency improvements and strategic upgrades, the country can position itself for a more resilient and environmentally responsible energy future.
Wong Chin Hean is the Head of Services for Southeast Asia at Sulzer
