Formosa to shut refinery units for 50 days of regular maintenance

11-May-06

Taiwan's Formosa Petrochemical Corp. plans to shut its crude and desulphurising units from June 20. The export-oriented refiner is to shut the 150,000 bpd crude distillation unit (CDU) and will expand it by 20%. The 70,000-bpd residual desulphuriser and the 63,000-bpd hydro-desulphuriser will also close for maintenance during the period.This regular maintenance shutdown scheduled for 50 days will compound the region's fuel supply tightness. Formosa exports at least 240,000 tons of gas oil and 60,000-90,000 tons of jet fuel every month via spot and term sales, and will cut back on fuel exports during the maintenance period. The maintenance shutdown could lead to tightening of the regional gasoline availability. This is likely to keep prices on the boil, especially as refineries in South Korea are limiting exports ahead of a domestic fuel tax rise from July 1. The refinery's two other crude units with capacity of 180,000 bpd will operate normally during the turnaround, along with the other residual desulphuriser and the hydro-desulphuriser.