Taiwan's private-sector refiner Formosa Petrochemical will further cut run rates in April at its Mailiao complex because of ongoing feedstock supply disruptions.
Run rates at the 540,000 b/d Mailiao refinery were initially planned at around 340,000 b/d for April. The refiner began planned maintenance last week and expects to complete the turnaround by the end of April.
In view of prolonged feedstock supply disruptions resulting from the US-Iran war, Formosa will reduce operating rates by an additional 80,000-120,000 b/d next month, the company's spokesperson told Argus on 16 March.
Formosa last week shut the No.2 180,000 b/d crude distillation unit (CDU), one 84,000 b/d residual fluid catalytic cracker (RFCC) and one 80,500 b/d residual desulphuriser (RDS) for scheduled maintenance, according to sources close to the matter.
The deeper run cuts could also prompt jet fuel buying interest from the refiner, the spokesperson noted, as Formosa accounts for 40-45pc of Taiwan's jet fuel market share. Gasoline and diesel inventories, meanwhile, remain sufficient.
Oil product export plans from the Mailiao plant in April had already been set at minimal levels because of scheduled maintenance, and the refiner will continue to prioritise supplies to term lifters, the spokesperson said.
Formosa will also lower overall run rates at its naphtha crackers later this month, likely shutting one of the two currently operating units, the spokesperson said. The company owns three crackers in Mailiao, with the two operating units currently running at 70pc. Formosa has earlier declared force majeure on olefins supply from its Mailiao complex on 9 March, citing feedstock supply disruptions.
Operational plans for May have yet to be determined because of significant uncertainties surrounding traffic through the strait of Hormuz. Formosa has already sought alternative feedstocks from other regions, including West Africa, according to sources.
Formosa is one of north Asia's major transport-fuel exporters. The company exported a total of 45,000 b/d of gasoline, 145,000 b/d of diesel and gasoil, and 17,000 b/d of jet fuel in 2025, according to Kpler vessel-tracking data.
The Mailiao refinery imported around 443,000 b/d of crude in 2025, with 97pc sourced from the Middle East, Kpler data show. Of this, 83pc was shipped from Mideast Gulf ports that are now blocked because of the strait of Hormuz traffic disruptions, while 14pc came from Oman via Mina Al Fahal outside the strait. Around 34pc was from Saudi Arabia, although it remains unclear whether Formosa is currently attempting to load crude from Yanbu.
