India’s IOC restarts Paradip FCC after shutdown

Spanish Market: Oil products
22/06/22

India's largest state-controlled refiner IOC has restarted a fluid catalytic cracker (FCC) unit at its 300,000 b/d Paradip refinery after an unexpected shutdown last week, according to a source familiar with refinery operations.

A FCC unit at IOC's Paradip refinery had shut down on 13 June, but has since restarted on 19 or 20 June. The reason for the shutdown could not be confirmed, but a leakage was cited as a possible reason. FCCs convert heavier residual oils into more valuable gasoline and other lighter products.

The refiner had previously emerged to buy 120,000-128,000t (1.01mn-1.08mn bl) of gasoline for very prompt delivery to India via a tender that closes today. It sought four 30,000-32,000t gasoline cargoes for 25-29 June delivery to Paradip, 25-28 June delivery to Kandla, 28 June-1 July delivery to Kandla and Kochi, and 4-10 July delivery to Kandla.

The prompt requirements could be related to the FCC issue as it produces gasoline, an India-based trader said. But this could not be confirmed with IOC. Domestic fuel shortages and more gasoline being exported by private-sector refiners instead of being sold domestically because of strong international prices were also suggested as possible reasons.

The refiner was running at nearly maximum capacity in May because of firmer refinery margins and increased transport fuel demand during the summer, which typically lasts until June. It also deferred a maintenance shutdown at Paradip from April-May to a later date because of the firmer margins.

IOC previously offered rare high-sulphur gasoline after a partial shutdown at its 161,000 b/d Haldia refinery, following a fatal flash fire in December last year.

By Sarah Giam and Aldric Chew

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