A fire broke out at the Royal Dutch Shell’s refinery in Pulau Bukom, off Singapore. The fire is expected to affect regional supplies of gasoline and other products in the short term, as per AFP, though it was brought under control and extinguished 34 hours after it began. Shell was believed to have started a progressive shutdown of the whole refinery before the fire was put out. Shutdown of the refinery, with a crude refining capacity of 500,000 bpd and fuels, lubricants and specialty chemicals, will affect regional supply of gasoline and petrochemical products in the short term.
90% of Shell’s exports are towards the Asia-Pacific region. The region is headed towards winter- its peak demand period for distillate oil, used in heating. The refinery fire will thus result in demand for distillates in Asia region from various areas of the world, having a significant impact in the short-term impact on supply. However, longer-term effects would depend on how quickly Shell can get the refinery running normally.