Exxon, Shell cut operating capacity at major Singapore refineries

18-Sep-06

Along with its counterparts in South Korea and Japan, Exxon Mobil Corp. and Royal Dutch Shell have cut runs at their big Singapore refineries, triggered by a deep slump in profit margins. ExxonMobil has cut runs at its 605,000 bpd refinery in Jurong Island refining hub by 8-10% since August and are geared toward cutting output of light distillates, mainly naphtha, which is mostly fed into its neighbouring petrochemical plant with a 1 million tpa naphtha cracker. Shell has cut output at its 500,000 bpd refinery on Bukom Island after completing maintenance on a 34,000-bpd hydro cracking plant in end-August, resulting in a 5-10% cut. Singapore Refining Co. (SRC), that started a scheduled month-long turnaround at its 42,000-44,000 bpd residual catalytic cracker on Sept. 9, has not imposed run cuts at its 285,000-bpd plant. If margins continue to be unhealthy, the process of bringing it back to full capacity, could be slowed down.