Fire will not affect base oils supply - Exxon

15 May 2007 08:39  [Source: ICIS news]

SINGAPORE (ICIS news)--ExxonMobil has informed buyers of base oils in the region that it is not anticipating any supply problems from the shutdown at a crude distillation unit (CDU) in Singapore after a refinery fire.

 

“ExxonMobil has informed us that we’ll receive our regular supplies for June under the term contract we have with the company,” a major lubricants blender in Singapore told ICIS news. ExxonMobil produces grades SN 150 and SN 600 in Singapore.

 

However, another major seller said it anticipated the shutdown could affect spot supplies of Group I base oils. “We feel the company may soon be constrained to fulfil its spot commitments,” a senior official with the seller said.

 

About 80% of ExxonMobil’s total production in Singapore is for buyers under term contract and 20% for the spot market. It produces about 1.28m tonnes of base oils in Singapore per annum - 625,000 tonnes of Group 1 and the rest Group II.

 

The prolonged shutdown at the 115,000 bbl/day CDU at ExxonMobil Singapore’s Pulau Ayer Chawan site on Jurong island is expected to affect feedstock supplies to the company’s base oils plant at the same facility, leading to lower operating margins.

 

However, some market sources had hoped the CDU would be restarted within a few days after it was shut to facilitate investigations when a fire broke out on 3 May, killing three people.

 

A spokeswoman from ExxonMobil Singapore said things were still at “status quo” since the fire.

 

Meanwhile, the company’s olefins and polymer production were heard to be unaffected by the prolonged CDU shutdown.

 

“Everything seems to be as normal,” a Singapore-based olefins trader said.

 

“I have not heard anything that has affected olefins production and regional supply,” said an analyst with a regional chemicals consulting company.

 

Jeanne Lim contributed to this article.

By: Shibu Itty Kuttickal
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly