Taiwanese private-sector refiner Formosa will extend planned maintenance at its Mailiao complex and reduce refinery run rates this month.
The decision is a result of high inventory levels amid falling domestic and international demand. The refiner is a major exporter of oil products to Asia-Pacific, but most of the region remains on lockdown to stop the spread of Covid-19, putting pressure on jet fuel, gasoline and gasoil demand.
Formosa will extend planned maintenance at its 540,000 b/d Mailiao complex to May. The refinery was supposed to resume operations last month. It will also cut operating rates to around 440,000 b/d this month, about 80pc of the complex's nameplate capacity, said a company official.
Formosa has delayed the restart of one of its three 180,000 b/d crude distillate units (CDU) to around 10 May, from the original schedule of the second half of April, the official said. It started planned maintenance at the unit in the first half of March.
The delay is because of some unexpected issues, which extended maintenance at one of Formosa's residual desulphurisation (RDS) units. The unit had just restarted on or around 30 April, a delay from an initial schedule of around 20 April. Formosa operates two RDS units, with a capacity of 80,000 b/d each.
Formosa plans to also restart one of its two 84,000 b/d residual fluid catalytic crackers (RFCCs) on or around 20 May. The unit has been down for maintenance since the first half of March. It also intends to reduce the two units' average output at the end of this month.
The operating rate at the other RFCC cannot be confirmed but a lower run rate may lead to more exports of low-sulphur fuel oil, a feedstock for RFCC units, and a fall in gasoline production.
