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REFINERY NEWS ROUNDUP: Stocks draw in Singapore, imports and exports rise

Singapore’s commercial onshore middle distillate stockpiles fell to the lowest level in nearly five months, dropping under 15 million barrels as exports rose, although stockpiles remain at historically high levels.

Enterprise Singapore data showed that stocks are currently 50.4% higher compared with a year ago. Gasoil exports jumped with most of the barrels flowing to Australia, Malaysia and Myanmar.

Separately, at least three more LR tankers filled with gasoline are heading to Asia from Europe, as demand in the West continues to flounder amid an uncertain COVID-19 outlook. “Asia is an attractive destination since the East-West spread is still strong,” one Singapore gasoline trader said. Another source highlighted countries like Indonesia, Malaysia and India, that despite having high levels of infection, have experienced steady domestic demand amid the lack of movement restrictions.

The Philippines is solidifying its status as the next major regional importer of gasoline, with the country’s imports of gasoline slated to rise in 2021 on better oil products import infrastructure and lower domestic supply of refined products. The expectations come as the last domestic refinery, Petron’s 180,000 b/d Bataan plant, is slated to suspend operations temporarily from mid-January 2021 on weak refining margins. The Pilipinas Shell Petroleum Corp. had also shut its 110,000 b/d Tabangao refinery with the facility turned into an import site. Together with the company’s North Mindanao Import Facility, the two units have ensured steady domestic supply to the Philippines’ Visayas and Mindanao regions. Pilipinas Shell Petroleum Corp. also opened a new oil import facility at Subic on Nov. 30 — the company’s third oil import terminal in the Philippines — capable of receiving 54 million liters of oil products from MR tankers, according to a statement by the company. “With more import terminals, there naturally will be more movements of gasoline into the country moving forward. I believe that they [the Philippines] will play a larger role in determining market fundamentals in the future, given that they have an obvious lack of domestic refining capacity,” one Singapore-based market source said.

Meanwhile, little maintenance has been reported in the Asia-Pacific region with refineries in India running at near full capacity.

** India’s No.1 state-owned refiner Indian Oil Corp. has been running its plants at full capacity since early November.

** India’s Mangalore Refinery and Petrochemicals Ltd. is running at 90%.

** India’s state-owned refiner Bharat Petroleum Corp. Ltd. has returned operation levels at its Kochi and Mumbai refineries to near full capacity.

** India’s Chennai Petroleum Corp. Ltd-owned Manali refinery is operating at a run rate of 95%.

** Shell will halve the crude processing capacity at its Pulau Bukom refinery in Singapore as part of the energy major’s initiative to reduce its CO2 emissions to net zero by 2050. “Bukom will pivot from a crude oil, fuels-based product slate towards new, low-carbon value chains,” the company said. “We will reduce our crude processing capacity by about half and aim to deliver a significant reduction in CO2 emissions.”

** South Korea’s top refiner SK Energy has shut two CDUs at Ulsan but plans to restart the 60,000 b/d No. 1 crude distillation unit and 170,000 b/d No. 3 CDU at Ulsan in January.

** Indonesia’s state-owned Pertamina was reported to be keeping the run rate at its Balikpapan refinery in East Kalimantan steady at around 80% with industry sources noting that the refinery has no plans to raise its run rate back to 100%, as refining margins across the barrel remain poor.

** Pilipinas Shell Petroleum Corp plans to shut down its Tabangao refinery and transform the facility into an import terminal, the company said in a statement. The refinery has been shut since May 24, having been idled due to weak demand for domestic products.

** Philippines’ Petron plans to halt temporarily its Bataan refinery in the middle of January. The refinery would resume processing depending on the improvement of the Philippines economy. The company has previously said that the Bataan plant may close should discussions regarding customs tax with the government fall through.

** New Zealand’s Refining NZ is moving ahead with its plans to convert its refinery into an import terminal, putting into motion the next phase of long-term strategic plans that will turn New Zealand into a full importer of refined oil products. Marsden Point has been operating at a “cash neutral” position, since simplifying its operations after restart in October.

** Australia’s second-largest refiner, Viva Energy, has decided to avoid closure of its Geelong refinery, as the company takes up a payment lifeline extended by the Australian federal government. The grant, also known as the “interim Refinery Production Payment,” will last for six months from January-July 2021. Refineries that take part in the grant, will have to agree to maintain operations at least during the tenure of the program, committing to “an open book process and long-term self-help measures to further inform the development of the long-term Refinery Production Payment.” Should refining margins stay on an upward trajectory, “the Company expects to be able to maintain refining operations once the interim Refinery Production Payment concludes at the end of June 2021,” the company also said in a separate statement.

** Ampol, formally Caltex Australia, has announced the start of a “comprehensive review” of its Lytton refinery in Brisbane as a prolonged period of poor refining margins and an uncertain outlook threaten the closure of the facility. “The review will consider all options for the facility’s operations and for the connected supply chains and markets it serves,” Ampol said in the statement on its website. “These options include closure and permanent transition to an import model, the continuation of existing refining operations and other alternate models of operation, including the necessary investments required to execute each of the options,” the company added.

** The Maritime Union of Australia has urged the federal government to nationalize BP’s Kwinana oil refinery, rather than allow it to be closed. BP Australia on Oct. 30 said it was planning to shut its Kwinana refinery and convert it into a fuel import terminal, in a strategy aimed to better meet the needs of a changing oil market.

** Vietnam’s Nghi Son refinery will keep its operating run rate above 100% of capacity in the near term, even as a buildup of inventories put domestic buyers under pressure, industry sources with close knowledge of the matter said.

** Thailand’s PTT Global Chemical plans to raise run rates at its refinery in Map Ta Phut to over 90% in December, from 80%-90% in November, due to improving margins, a source close to the matter said Nov. 24.

** Taiwan’s Formosa Petrochemical plans to operate its Mailiao refinery at reduced rates of around 60% of capacity in January and February as demand for refined products remain tepid and several secondary units are shut over this period, a company spokesman said late-Jan. 5. Formosa plans to operate its refinery at 320,000 b/d in January and 330,000 b/d in February, putting operations at 59% and 61% of nameplate capacity, respectively. Formosa had idled one of its crude distillation units of 180,000 b/d in November 2020 due to weak margins and low secondary unit operations. The idled CDU is expected to restart in the second half of the year when its No. 2 RDS unit restarts following the completion of repairs, the source said, adding margins are also expected to improve by then. The company’s No. 2 RDS was shut July 15 after a fire. The unit’s restart was originally planned for April at the earliest. The company has three CDUs at the Mailiao refinery, each with a capacity of 180,000 b/d.

In other news, India’s state-run refiner Bharat Petroleum Corp. Ltd has decided to buy a 36.62% stake of OQ S.A.O.C.(formerly known as Oman Oil Company S.A.O.C) in its subsidiary company Bharat Oman Refineries Ltd, company officials said Dec. 30. The board of BPCL approved the acquisition scheme earlier in the month. The acquisition will be subject to regulatory approvals. BPCL, India’s No.2 state-run refiners, has a 63.38% stake in BORL that owns Bina refinery in central India.

State-owned refiner Indian Oil Corp. has introduced a mechanism for multi-point remote monitoring of 27 gas turbines at eight of its nine refineries, company officials said. Disruptions in gas turbine operations, besides affecting the productivity by shutting down the generation of captive electricity for refining units also lead to hydrocarbon flaring from the refineries to the atmosphere, impacting environmental health and sustainability.

South Korea’s major business conglomerate SK Group said Jan. 7 it will invest Won 1.6 trillion ($1.5 billion) in US fuel cell maker Plug Power Inc., a move that will help the company expand its hydrogen footprint. The plan by SK Group, which runs the country’s biggest oil refiner, is seen as an effort by the company to have a bigger presence in the carbon-free fuel sector and diversify its energy mix at a time when South Korea is aggressively pushing ahead with energy transition plans. Under the deal, SK Holdings, the group’s holding company, and SK E&S, a natural gas subsidiary, will acquire a combined 9.9% stake in Plug Power, with the strategic investment making it the biggest shareholder, SK Holdings said in a statement.

Under the deal, the SK units and Plug Power will form a joint venture in South Korea to provide hydrogen fuel cell systems, fueling stations and electrolyzers to the Korean and broader Asian markets, such as China and Vietnam. The group aims to have a hydrogen production capacity of 30,000 mt/year in 2023 and 280,000 mt/year by 2025 and establish a value chain ranging from production to distribution and supply.

In pursuing overseas ambitions, SK Group joins Hyundai Motor, which is considering building its first overseas hydrogen fuel cell systems plant in Guangzhou, China, according to a company source.

New and ongoing maintenance
New and revised entries

** State-owned Indian Oil Corp., which reduced gasoline production at its Paradip refinery in December due to a technical issue at the fluid catalytic cracking unit, was expected to bring the unit back online shortly. The FCC unit, which produces gasoline components, was expected back this or next week, following an outage since early December, according to sources on Jan. 6.


** Taiwan’s Formosa Petrochemical plans to operate its Mailiao refinery at reduced rates of around 60% of capacity in January and February as demand for refined products remain tepid and several secondary units are shut over this period, a company spokesman said. Formosa had idled one of its crude distillation units of 180,000 b/d in November 2020 due to weak margins and low secondary unit operations. The idled CDU is expected to restart in the second half of the year when its No. 2 RDS unit restarts following the completion of repairs, the source said, adding margins are also expected to improve by then. The company’s No. 2 RDS was shut July 15 after a fire. The unit’s restart was originally planned for April at the earliest. The company has three CDUs at the Mailiao refinery, each with a capacity of 180,000 b/d. Separately, Taiwan’s Formosa Petrochemical plans to idle one of its gasoline-producing residue fluid catalytic cracking units at Mailiao refinery for 65 days of maintenance from Feb. 23. Formosa operates two RFCCs, each 84,000 b/d in capacity. Currently, both RFCCs are operating at 75% of capacity on maximum propylene mode, as propylene margins remain strong, the official said. Formosa Petrochemical plans to restart the delayed coker at Mailiao refinery around Jan. 25. The unit was shut Dec. 1 for 55 days of maintenance.

** Taiwan’s state-run CPC has shut one crude distillation unit at its Taoyuan refinery for maintenance until end-January, industry sources with close knowledge of the matter said Dec. 30. Works at the 100,000 b/d CDU were said to have started around mid-December, with several other secondary units associated with the CDU also shut, one source said. The turnaround at the Taoyuan refinery will take around 45 days.

** Taiwan’s CPC, which was conducting maintenance at a 100,000 b/d CDU at its Dalin refinery that began earlier in November and was to take 60 days to complete, has brought back the CDU online mid-December and is “operating without any issues,” an industry source with close knowledge of the refinery’s operations said.

Existing entries

** South Korea’s top refiner SK Energy plans to restart its 60,000 b/d No. 1 crude distillation unit and 170,000 b/d No. 3 CDU at Ulsan in January, but the company will keep its crude throughput under 80% due to sluggish demand of oil products amid the prolonged coronavirus pandemic, a company source told S&P Global Platts. SK Energy has shut its No. 3 CDU in the Ulsan complex on the country’s southeast coast since late September, earlier than the original schedule of maintenance, to lower crude run rate in response to poor refining margins amid the protracted pandemic.

** Sri Lankan Ceylon Petroleum Corp.’s Sapugaskanda refinery will shut for maintenance Feb 15-Apr 3 2021. According to S&P Global Platts records, Sri Lanka’s state-owned Ceylon Petroleum Corp., or Ceypetco, had last shut its refinery in Sapugaskanda for maintenance over Feb. 19-Mar. 25, 2018.

** Viva Energy, Australia’s second-largest refiner, said it was delaying planned maintenance at its hydrofluoric acid alkylation unit to 2021 from late 2020.

** New Zealand’s Marsden Point was planning to undergo a scheduled turnaround at its No.1 crude distillation unit and continuous catalytic reforming platformer in 2021 that had been originally planned for 2020, the duration of which could not be confirmed.

** Pilipinas Shell Petroleum Corp. will be shutting down its Tabangao refinery, transforming the facility into an import terminal, the company said in a statement released on its website Aug. 13. The refinery has been shut since May 24, having been idled due to weak domestic product demand.

Existing entries

** In May, Pertamina and South Korean Consortium DH Global Holdings Co signed a memorandum of understanding for the upgrade of the Dumai refinery complex, with plans to increase the refinery’s operating capacity as part of the company’s Refinery Development Master Plan.

** Indonesia’s TPPI has laid out the next steps of its upgrading works at its Tuban refinery, setting 2024 as the target for the completion of its new Olefin Project. The new Olefin Project, which will consist of the construction of a new naphtha cracker as well as the necessary downstream units, will provide the facility an additional “1 million mt/year Polyethylene products and 600,000 mt/year Polyethylene,” according to the company statement. In addition the Olefin project, TPPI will also continue its Aromatic Revamping project, which will “increase petrochemical production in the form of Paraxylene from 600,000 mt/year to 780,000 mt/year,” added the statement. The Olefin Project is slated for completion by 2024 while the Aromatic Revamping project will complete by 2022.

** Two separate consortiums have submitted bids for the engineering, procurement and construction contract to build, upgrade and expand project of Dung Quat refinery in central Vietnam. They is a consortium of Hyundai Engineering & Construction Co. Ltd. and Hyundai Engineering Co., Ltd.; and consortium of Technip Italy, Technip Geoproduction (M) Sdn Bhd, Technip France, PetroVietnam Technical Services Corp. and Vietnam’s Lilama Corp. The upgrade will raise the capacity of Dung Quat to 8.5 million mt/year from current 6.5 million mt/year. The project will enable the refinery to diversify its crude inputs and meet Euro-V standards for its fuels.

** Pakistan’s Attock Refinery has planned to install a hydrocracking facility, Attock Refinery Limited told analysts. Attock Refinery is considering two upgrade projects, including the hydrocracker as well as a Continuous Catalyst Regeneration (CCR), the company’s officials told the analysts. After the implementation of these projects, Attock Refinery would be able to produce Euro V compliant gasoline and diesel along with full conversion of naphtha into mogas.

** The Pakistan National Refinery has issued shares in order to upgrade and expand the plant into a deep conversion refinery, according to market sources and company documents. The proceeds will be used to revamp units and increase the gasoline and diesel yield.

** Pakistan’s Byco Petroleum Pakistan said it plans to build an aromatics plant with a capacity of 27,300 b/d to produce benzene, mixed xylene, paraxylene, orthoxylene, C9 and raffinate.

** State-run Indian Oil Corp-owned Gujarat refinery’s capacity expansion project is set to be over by Sept.30 2024, company officials said, a delay of one and a half years from the previous deadline. The delay is primarily due to the rescheduling of the project execution timelines for the pending projects as a result of the coronavirus pandemic. The initial deadline for the capacity expansion project was contemplated for 2020. The expansion plan will help the refinery on the west coast to process cheaper heavy crude grades and improve profitability. Under the expansion project, the existing smaller capacity atmospheric unit and vacuum units will be replaced by a large atmospheric vacuum unit (AVU) for raising the operational efficiency of the refinery. The project also involves a revamp of the existing hydrogen generation unit for the production of syngas and hydrogen, a new n-butanol processing unit and a revamp of the linear alkylbenzenes (LAB) unit. IOC plans to raise the capacity of the Gujarat refinery to 360,000 b/d by March 2023 from the current 275,000 b/d.

** Indian Oil Corp. owned Paradip refinery will install the first stage of a Grassroot Needle Coker Unit by using its own in-house technology. The proposed unit will have a Calcined Needle Coke, or CNC, production capacity of 56 kilotons/year. Currently, the entire Needle Coke requirement of the country (80-100 kilotons/year) is met via imports. The company does not plan any expansion for its Paradip refinery, whose overall capacity is 15 million mt/yr.

** HPCL’s $3.2 billion project to expand Vizag’s capacity to 300,000 b/d is in advance stage of completion, company officials said. Originally, the expansion project was scheduled for completion in July 2020. But officials did not provide any specific timeframe for the completion of the project. The project aims to install primary processing units such as a CDU, replacing one of the three existing CDUs, a hydrocracker, and a naphtha isomerization unit.

** IOC plans to expand the atmospheric and vacuum unit at its Barauni refinery to boost its overall capacity to 9 million mt/year by 2021.

** Reliance Industries Ltd. has received clearance to raise the capacity of its export-oriented Jamnagar refinery on the west coast of India by 17% to 41 million mt (820,000 b/d). By 2030, RIL aims to raise its total refining capacity — including its domestic-focused refinery — at Jamnagar to 98.2 million mt/year. Reliance currently is 1.37 million b/d, of it 707,000 b/d for the export and 660,000 b/d domestic. The export one will increase capacity to 820,000 b/d. By 2030, it aims to raise its overall capacity to 1.96 million b/d.

** India’s IOC plans to raise the capacity of its Panipat refinery to 25 million mt/year by 2021 to meet growing demand for oil products. The refinery’s capacity is 15 million mt/year.

** India’s cabinet has approved a project to expand the capacity of the Numaligarh refinery to 9 million mt/year from 3 million mt/year.

** Nayara Energy is seeking the renewal of environmental approval to double capacity at its Vadinar refinery as the previous approval had been given to Essar Oil. It had planned to double the refining capacity at Vadinar to 40 million mt/year.

** IOC has signed up energy technology and infrastructure solutions provider CB&I for a residue upgrading unit at its Mathura refinery in north India.

** Hengyi Industries plans to more than double the capacity at its integrated refinery and aromatics complex in Brunei to around 455,000 b/d, from its current 160,000 b/d, over three years. The expansion will raise the refinery’s gasoline output by 2.55 million mt/year, gasoil by 1.94 million mt/year, jet fuel by 1.84 million mt/year and LPG by 190,000 mt/year. The refinery currently has a combined gasoline, diesel and jet fuel output of around 6 million mt/year. There are also plans to increase olefin/polyolefin production capacity.

** Indonesia’s Pertamina is planning to build a petrochemical plant at its Balongan refinery in West Java and will cooperate in the project with Taiwan’s CPC. The project is expected to be completed in 2026. Pertamina will build the project in three phases. The first phase is to increase refining capacity from to 150,000 b/d by 2022 from 125,000 b/d currently. The second and third phase will increase the product yield from the refinery, including from the new petrochemical plant. Under the plan, Pertamina and CPC will build a naphtha cracker that is expected to substitute imports. The naphtha cracker will produce at least 1 million mt/year of ethylene. Pertamina is also cooperating with Abu Dhabi National Oil Company (ADNOC) in the Balongan refinery project.

** Hyundai Engineering has won a $2.17 billion deal to upgrade the Balikpapan refinery in Indonesia. Hyundai Engineering will “be responsible for the engineering, procurement and construction for the facility upgrade,” which would take 53 months for completion and increase the refinery’s capacity from 260,000 b/d to 360,000 b/d. Completion was expected in 2023. Separately, Indonesia’s Pertamina and Mubadala signed a Refinery Investment Principle Agreement to evaluate any possibility to cooperate in processing sector, including to accelerate Pertamina’s Balikpapan project that is expected to require about $5.5 billion of investment.

** Indonesia’s state-owned oil and gas company Pertamina will use Honeywell UOP technologies to produce advanced biofuels at its Plaju and Cilacap refineries. Honeywell said. “Pertamina chose to work with UOP to build a greenfield biorefinery at Plaju and revamp its Cilacap refinery,” Honeywell said. The biorefinery in Plaju will produce 20,000 b/d of vegetable oils and fat to produce renewable jet fuel, renewable diesel fuel and green LPG at the Plaju refinery. The Cilacap refinery will be revamped to process 6,000 b/d of vegetable oils and fats to produce advanced biofuels. Separately, Pertamina will go ahead and revamp its Cilacap refinery without Saudi Aramco, raising capacity from 348,000 b/d to 370,000 b/d. The company had signed a heads of agreement on the revamp project in November 2015 with the Saudi oil major, but Aramco did not accept the figure that Pertamina had given on asset valuation, Platts has reported. Pertamina now plans to find other partners to work on the project. Originally the project was expected to be completed in 2022 but now it may be delayed to 2023. After the project is completed, Pertamina will be able to produce an additional 80,000 b/d of gasoline, 60,000 b/d of diesel and 40,000 b/d of jet fuel from Cilacap. The project includes increasing the crude distillation unit’s capacity; raising the residual fluid catalytic cracking unit’s capacity from 62,000 b/d to 81,000 b/d and adding a new 43,000 b/d hydro cracking unit.

** SK Energy has delayed full operation at its newly built 40,000 b/d desulfurization unit due to “deterioration in market conditions” in the wake of the coronavirus pandemic. The refiner completed mechanical construction of the vacuum residue desulfurization, or VRDS, unit on January 31, three months ahead of original schedule, to supply IMO 2020 low sulfur marine fuels to the market. The company previously aimed to start commercial production by the end of March.

** At Thailand’s Bangchak Petroleum an expansion plan is under way to ramp up the 120,000 b/d refinery’s production capacity to 140,000 b/d, through installation of a continuous catalyst regeneration unit. Under the expansion plan, the company will also debottleneck the hydrocracker, which could expand the refinery’s production capacity by 10%.

** Saudi Aramco and S-Oil signed a memorandum of understanding to collaborate on a $6 billion steam cracker and olefin downstream project at Onsan due for completion in 2024, which will produce ethylene and other basic chemicals from naphtha and off-gas.

** ExxonMobil announced a final investment decision at its Singapore complex. The project includes an expansion aimed at converting “fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates.” Startup is set for 2023. The expansion will add capacity to increase cleaner fuels output with lower sulfur content by 48,000 b/d.

** Petron plans to expand and upgrade its Bataan refinery in Limay, increasing its capacity by 55% to produce 75,000 b/d of refined products and 1 million mt/year of aromatics. There was no timeline for when the expansion will take place. The refinery’s capacity will be increased by 100,000 b/d of condensates and light crude oils, from current capacity of 180,000 b/d.

** The Philippines’ Petron Corp. has been considering a plan to more than double capacity at its 88,000 b/d Port Dickson refinery in Malaysia to 178,000 b/d.

Existing entries

** Malaysia’s Pengerang Refining and Petrochemical, also known as PRefChem, is scheduled for a Q1 2021 start-up. The start which was initially scheduled for September has been delayed to early 2021.

After a March fire at a diesel unit at Malaysia’s PRefChem refinery, also known as RAPID, all facilities were in shutdown, Platts reported at the time. This was the second major incident at the Pengerang Integrated Complex, which was started up in Q3 2019. In April 2019, there was an explosion and fire at the atmospheric residue desulfurization unit when the refinery was in the commissioning stage.

** India’s proposed new 1.2 million b/d Ratnagiri refinery on the west coast is still facing delay due to “local issues”, the country’s Minister of Petroleum & Natural Gas and Minister of Steel Dharmendra Pradhan said. Construction at the site was expected to start in 2020 but there have been issues relating to land acquisition which had stalled the project. The location of the project has already moved once, from Ratnagiri district to Raigad district. The refinery is now expected to be commissioned in 2025, according to industry sources.

** Chennai Petroleum Corp. Ltd’s proposed 9 million mt refinery at Cauvery Basin in South India has received clearance from an environment ministry panel, company officials said. The refinery project has been approved by CPCL’s parent company Indian Oil Corp., India’s No.1 state-owned refiner. IOC holds a 51.89% share in CPCL. The proposed project will be a state-of-the-art modern refinery cum petrochemical project, including a polypropylene unit. The refinery will have capacities to produce around 4 million mt/year diesel, 1.8 million mt/y gasoline, both Euro 6 grades and 0.6 million m/y of LPG, and 0.3 million mt/y jet fuel. The refinery will be designed to process 50% each of a mix of Basrah Light, Basrah Heavy grades and 100% with respect to Iranian Light. CPCL currently operates two refineries with a combined capacity of 11.5 million mt/year in Tamil Nadu.

** Pak-Arab Oil Refinery Limited will start physical works on its coastal refinery in H1 2021, after almost 13-years of consecutive delays to the project, industry sources with close knowledge of the matter said. Following the start of the works, the refinery is expected to come online in 2025-2026, and will increase the country’s refining capacity by 250,000 b/d. PARCO also operates the 100,000 b/d Mid-Country Refinery in Mahmoodkot. The project for the coastal refinery was approved in 2007, but construction was subsequently delayed due to issues regarding funding.

** Infrastructure for Mongolia’s first refinery in Dornogobi (Dornogovi) has been completed with construction of the groundwork for the refinery’s site underway, according to local media report. It is operated by the state owned Mongolian Oil Refinery. Mongolia’s first refinery is expected to reach full capacity by 2026, S&P Global Platts has previously reported.

** Indonesia’s Pertamina decided to postpone the construction of a proposed 300,000 b/d Bontang refinery in East Kalimantan. “Bontang is still on the list, but currently we are focusing on the existing ones,” Pertamina’s mega project refinery and petrochemical director Ignatius Tallulembang said, adding that upgrading the existing refineries is “our priority”. Ignatius Tallulembang said that the construction has been going on “but our partner stopped. So we hold the project while we are assessing more detail on oil supply and demand. If everything is clear, we will discuss again with our stake holders.” The proposed refinery is targeted to produce at least 60,000 b/d of gasoline and 124,000 b/d of diesel and the products will meet Euro IV specifications, with Pertamina prioritizing domestic marketing first.

** A Rosneft and Pertamina joint venture has signed a contract with Spanish Tecnicas Reunidas to design the construction of an oil refinery and petrochemical complex in Tuban, Indonesia, Rosneft said.

Primary processing design capacity is planned at up to 15 million mt/year, planned capacity at the petrochemical complex includes more than 1 million mt/year for ethylene and 1.3 million mt/year for aromatic hydrocarbons.

** Sri Lanka has approved a $20 billion refinery project at the port town of Hambantota. The announcement follows the inauguration of a smaller refinery complex at the port, which has backing from the Oman Oil Company.

** Iran remains open to investing in a planned expansion project by Chennai Petroleum Corp Ltd to set up a 180,000 b/d refinery at Cauvery Basin at Nagapattinam, in the southern Indian state of Tamil Nadhu, Indian oil ministry officials said. IOC holds a 51.9% share in CPCL, while NIOC holds 15.4% through Swiss subsidiary Naftiran Intertrade.

** Global trader Vitol is looking to build a 30,000 b/d refinery in southern Malaysia’s Johor state. The project involves a simple refinery to be built at Tanjung Bin at VTTI’s ATB tank farm. ATB, or ATT Tanjung Bin Sdn Bhd, is a terminal 100% owned by VTTI. Vitol co-owns VTTI.

** Haldia Petrochemicals Ltd.’s proposal to invest $4.05 billion in an integrated refinery and petrochemicals facility in Balasore, India, has been granted approval by the Odisha government.

** Pakistan and Saudi Arabia are in talks to develop a 200,000-300,000 b/d refinery in Balochistan’s Gwadar district for $10 billion.

** A new HPCL project in Barmer, India, is due for completion by March 2023.

** India’s big refinery project in Maharashtra, being developed by state-owned IOC, HPCL and BPCL, will start up around 2022-23.
Source: Platts

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