- Indian Oil Corp. reduced crude throughput by 50% at its refineries to combat a slump in demand for petroleum products.
- Pakistan’s Attock Refinery in Punjab has increased its run rate to 67% of capacity.
- South Korea’s SK Energy in March reduced the crude run rate at Ulsan to 85%, from 95% a year earlier.
- Singapore Refining Company in April reduced the operating rate at its 290,000 b/d refinery due to poor refining margins.
- New Zealand’s Refining NZ plans to extend the reduced production mode.
- Caltex Australia’s 109,000 b/d Lytton Refinery has shifted forward its scheduled turnaround.
- Thai Oil has cut operating rates at Sriracha refinery by about 20% in response to falling demand.
- PetroVietnam’s Binh Son Refining and Petrochemical has postponed maintenance at its refinery at Dung Quat for a second time.
- Indonesian Pertamina brought forward planned maintenance at its Balikpapan and Sungai Pakning refineries.
- Pilipinas Shell Petroleum Corporation (PSPC) will temporarily shut operations at the Tabangao refinery.
A recently published article in Platts reveals about the refinery run cuts that continue in Asia-Pacific. It takes place though restrictions have been introduced to combat the coronavirus pandemic are gradually easing.
India- crude reduction at its refineries to combat a slump
The Indian government imposed a complete nationwide lockdown, initially from March 25 for 21 days to contain the pandemic, and subsequently extended it to mid-May. All the refineries in India have reduced the crude production.
These are the following refineries that reduced the crude production.
- Indian Oil Corp. reduced crude throughput by 50% .
- Chennai Petroleum Corp. has reduced the run rate at its Manali refinery to 30-35%.
- Bharat Oman Refineries Ltd.’s Bina refinery in central India trimmed its crude throughput level by “around 30%.
- Mangalore Refinery and Petrochemicals Ltd. reduced its run rate to 50%.
- Hindustan Petroleum Corp. has been running its Mumbai refinery at an 85% run rate despite.
- Bharat Petroleum Corp. Ltd has lowered the run rate at its refineries to 54%.
Refineries at Pakistan
Pakistan’s Attock Refinery in Punjab has increased its run rate to 67% of capacity. “In view of improvement in the uplifting of petroleum products, we have increased the production at our refinery,” it said.
Byco refinery resumed its operation. The government in Pakistan has also allowed the import of motor gasoline and diesel.
National Refinery Ltd. has resumed its operations from April 23. In an exchange filing to the Pakistan Stock Exchange, it said it is back in operation following rising demand in the remaining part of April and in May 2020. The refinery temporarily closed all its production as of March 25, 2020.
Karachi-based Pakistan Refinery Ltd. is currently running at 55% of capacity. It previously cut its utilization rate to 50% in the wake of the ongoing demand collapse due to the coronavirus pandemic.
PARCO Mid-Country refinery is currently running at 30-40% of capacity, a company source said. PARCO carried out full maintenance from early February until April, according to market sources.
Refineries at South Korea
South Korea’s SK Energy in March reduced the crude run rate at Ulsan to 85%, from 95% a year earlier. SK Energy’s refining affiliate, SK Incheon Petroleum, which runs two CDUs with 275,000 b/d and a 100,000 b/d condensate splitter at the Incheon complex on the west coast, will not reduce its run rate because it is already low, an official said.
Hyundai Oilbank said it has lowered its crude run rate to 90% but declined to say whether it would cut rates further.
South Korea’s S-Oil Corp. did not reduce its run rates for the first three months despite the coronavirus fallout. But Q1 sales were down 6.3% from 762,000 b/d in the fourth quarter last year. Sales are expected to slump in the second quarter due to the coronavirus pandemic.
Singapore Refining Company
Singapore Refining Company in April reduced the operating rate at its 290,000 b/d refinery on Jurong Island due to poor refining margins. This is due to the global coronavirus pandemic has slashed oil product demand, market sources said.
Refining at New Zealand
New Zealand’s Refining NZ plans to extend the “reduced production mode” at its Marsden Point refinery for another two months until the end of August, “in response to the significant fuel demand reduction resulting from COVID-19 travel and transport restrictions,” the company said in a statement on its website.
Refineries at Australia
Caltex Australia’s 109,000 b/d Lytton Refinery has shifted forward its scheduled turnaround, with works at the facility to commence in May.
Australia’s Geelong refinery has begun preparations to shut the residual catalytic cracking unit and associated processing units, together with the smaller of the crude distillation units, from early May due to lower oil product demand, the company said in a statement. It is shutting down the units “in order to further reduce surplus production and continue operations during a period where fuel demand is lower than normal,” according to the statement on its website.
Thailand cuts by 20%
Thai Oil has cut operating rates at Sriracha refinery by about 20% in response to falling demand.
Taiwan to reduce operating rates
Taiwan’s Formosa Petrochemical is planning to reduce operating rates after units currently under maintenance restart, an official said. “We are thinking of a 10% cut for now. We will review the situation again and then decide,” he said. With the ongoing turnaround, Formosa’s refinery has been running at two-thirds of capacity. The company has not reduced operating rates at its other two CDUs, which are running at near full capacity, the official said.
Vietnam’s refinery
PetroVietnam’s Binh Son Refining and Petrochemical has postponed maintenance at its refinery at Dung Quat for a second time, to August 12, that was originally scheduled to start June 12 and earlier postponed to July 27, due to the global COVID-19 pandemic delaying the arrival of expert workers and parts, BSR said. “Vietnam and other countries are implementing various travel restriction measures to contain the spread. Therefore, the travelling of foreign experts to and from Vietnam and safety for the workforce at the site during the maintenance are a difficult task for BSR,” the company said in the statement.
Indonesian Pertamina plans for maintenance
Indonesian Pertamina brought forward planned maintenance at its Balikpapan and Sungai Pakning refineries by shutting the CDUs due to lower fuel demand. The move will allow the refineries to operate optimally once conditions returns to normal, a company official said. Meanwhile, Plaju refinery will begin to reduce production gradually. The company continued to operate its Balongan, Cilacap and Kasim refineries normally.
Pilipinas Shell Petroleum Corporation to shut temporarily
Pilipinas Shell Petroleum Corporation (PSPC) will temporarily shut operations at the Tabangao refinery in the Philippines for approximately one month, Shell said. The shutdown, starting from mid-May, is due to “the significant decline in demand for oil products and the significant deterioration of regional refining margins” following the Covid-19 pandemic.
The refinery will retain its flexibility to do an immediate start-up should market and demand conditions improve or stabilize.
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Source: Platts
