26 July 2010 09:05 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan’s Formosa shut its 540,000 bbl/day refinery in Mailiao, along with a number of its downstream facilities on Monday, a day after an explosion at its 73,000 bbl/day desulphurising plant at the complex.
The refinery was shut as a safety precaution, said a company source.
The resulting fire from the blast was just brought under control late "this morning", forcing the shutdown of some plants, including a 520,000 tonne/year group II base oils refinery, said another company source.
There were no casualties from the incident, which was the second to occur at the complex this month, the source said.
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The company’s olefin conversion unit (OCU), which can produce 250,000 tonnes/year of propylene, was also down, they said.
The shutdown at the Mailiao base oils refinery would not have a significant market impact, industry sources said, citing that the plant was taken off line just a week ahead of its schedule maintenance turnaround from 1 August.
"Our [base oils] refinery shutdown does not affect domestic delivery and export shipment. Our shipment will be on schedule," said a second source at
“We will lose an additional 10,000 tonnes of production due to this shutdown,” said a third
A number of export cargoes of group II base oils had been fixed by Formosa in the past few weeks – and the destinations included SE Asia, India, the Middle East and the US.
“A 100,000 tonne/year bitumen plant run by Simosa, a subsidiary of
"We still have feedstock inventory so our operation and exports are not affected," said the source.
Reporting by Judith Wang, Felicia Loo, Anu Agarwal and Peh Soo Hwee
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