Asian refineries/petchem companies cut output/declare force majeure

In Malaysia, Pengerang Refining (Prefchem), a joint venture between Petronas and Saudi Aramco, has shut down its 300,000-barrel-per-day crude unit and plans further shutdowns of derivative units due to feedstock shortages. It is also anticipated to close its 1.2 million-ton-per-year steam cracker this week. Sources indicate that over 70% of Prefchem’s crude imports last year came through the Strait of Hormuz.

Singapore Refining Co (SRC) has reduced refinery runs at its Jurong Island site to approximately 60% and is expected to maintain these lower levels through the month. SRC has also cut or delayed March naphtha deliveries. At the same location, ExxonMobil has reduced crude runs to about 50% or lower, down from around 80% or higher. Kpler ship-tracking data reveals that approximately 65% of the refinery’s crude this year has been sourced via the Strait of Hormuz. Singapore petrochemical firm PCS and Aster Chemicals and Energy also declared force majeure.

In Taiwan, Formosa Petrochemical Corp has issued a force majeure notice for certain petrochemical supplies. The company’s crackers are still operational at around 70%, but shutting one down will be considered if naphtha stocks are insufficient.

Mitsui Chemicals in Japan has started reducing ethylene production due to declining naphtha supplies, and Mitsubishi Chemical has also cut ethylene output. Sumitomo Chemical Asia issued a force majeure notice for methyl methacrylate production after its feedstock supplier, PCS, declared force majeure.

Bahrain’s Bapco Energies and Thailand’s Rayong Olefins have declared force majeure.

In China, Wanhua Chemical declared force majeure to its Middle East customers, while Shell’s joint venture with CNOOC plans to shut a steam cracker due to feedstock disruptions. Zhejiang Petrochemical Corp shut a unit, and Fujian Refining and Petrochemical Co also closed a crude unit. Additionally, China has urged refiners to halt new fuel export contracts.

India’s Mangalore Refinery and Petrochemicals shut a crude unit due to oil shortages.

South Korea’s Yeochun NCC has reduced output and declared force majeure.

Indonesia’s Chandra Asri has declared force majeure on all contracts.

Lastly, Vietnam’s Binh Son Refining and Petrochemical requested that the government prioritize domestic crude oil supply.