Taiwan's Formosa Petrochemical to shut base oil plant in July

09 May 2012 09:59  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical plans to shut its 600,000 tonne/year Group II base oil plant in Mailiao at the end of July, for about 40 days of maintenance, a company source said on Wednesday.

The turnaround is unlikely to have a significant impact on the Asian market, given the weak Chinese demand and healthy supply from local and regional refiners, industry players said.

The downstream lubricant sector in the key China market is expected to slow down from the second half of May as production activity for the spring oil-change season tapers off, Chinese blenders said.

The next peak consumption period typically starts in September, they added.

“Formosa is shutting the plant during the lull season and we have more than enough supply of the lower viscosity grades from local refiners,” a Chinese end-user said.

By: Yeow Pei Lin

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