Singapore, 26 July (Argus) — Taiwan's Formosa Petrochemical has shut its 540,000 b/d refinery at Mailiao after a weekend fire at its 80,000 b/d residual desulphurisation unit.

The shutdown could limit Formosa's gasoline exports to Asian buyers as well as buyers on the US west coast. Lower diesel exports could ease a growing supply overhang in Asia-Pacific, with few arbitrage prospects to Europe.

Formosa will restart two of its three crude distillation units in the next one to two days, as soon as the fire-affected areas are isolated. About 180,000 b/d will remain off line for an undetermined duration “unless we can get some sweet crude”, a company spokesman said. The fire, which started yesterday, still had not been completely put out today.

The Mailiao refinery shut an 84,000 b/d residue fluid catalytic cracker (RFCC) on 12 July because of a mechanical problem. The restart of the RFCC, scheduled for last weekend, is now under review. A separate fire on 7 July took out Formosa's 700,000 t/yr No.1 naphtha cracker, which is expected to restart in late September/early October.

Send comments to feedback@argusmedia.com
cx/rjd 2.1

If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.

Copyright © 2010 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.