Formosa restarts 80,000 bpd residual desulphurization unit, raises run rates at Mailiao refinery

After a week long disruption, Formosa Petrochemical has restarted an 80,000 bpd residual desulphurization unit and increased run rates to 95% at its 540,000 bpd Mailiao refinery, as reported by Argus. This increases supplies at a time when the Asian gasoil market is already well supplied, in a situation that has worsened due to poor arbitrage economics to Europe or the US. The residual desulphurization unit was shut a week ago to allow Formosa to carry out further investigations and make design corrections at the refinery following a fire in late July 2010. Formosa's other 80,000 bpd residual desulphurization unit remains shut indefinitely, with its No 3 CDU shut since the fire and not scheduled to restart until around October 2010.
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