SINGAPORE (ICIS)--Following a fire at Thailand’s Integrated Refinery Petrochemical Complex (IRPC)’s diesel production unit located in Rayong on Monday evening, the company's base oils production could potentially be impacted as the vacuum gas oil (VGO) stream was affected, a source close to the company said on Tuesday.
IRPC has a 320,000 tonne/year Group I base oils plant located in Rayong.
According to market sources, the fire, which started at around 18:00 hours Thailand time (11:00 GMT) on Monday at the vacuum gas oil (VGO) hydrotreater unit, was completely extinguished two hours later.
The source added that while the investigation on the full impact of the fire on base oils production was still underway, “ships and trucks have stopped loading”, prompting market expectations of tighter base oils supply in the Asian market in the near term.
With certain grades of Group I base oils such as brightstock being short in supply amidst healthy demand from key markets such as China, some market participants said that prices of brightstock might be further supported should supply from IRPC, a significant supplier of base oils in Asia, be impacted.