Formosa Plans Major Maintenance at Mailiao Refinery in 2017

Reuters, November 4, 2016

Taiwan's Formosa Petrochemical Corp has planned maintenance at its 540,000 barrels-per-day (bpd) Mailiao refinery next March, September and November, a company spokesman said on Friday. Formosa is one of the largest oil products exporters in Asia, so any major supply cuts from the refiner would likely support margins.

The refiner is planning to shut a 180,000 bpd crude distillation unit (CDU) and two residue desulphuriser units (RDS) with a capacity of 80,000 bpd each at some stage during the maintenance periods, said spokesman KY Lin. It is also planning to close a delayed coker unit and a vacuum distillation unit during the maintenance, he added. The exact duration and timeline of each closure will be firmed up later this month, he said. There will be more units in maintenance in 2017 than in typical years, he added.

"Next year, we will have more shutdowns than this year. Normally we have to shut down one CDU and two RDS and sometimes one residual fluid catalytic cracker, but next year we will shut down the delayed coker and vacuum unit also," he said.

Meanwhile, the company has offered diesel and jet fuel for 2017 term contracts, tender documents showed on Friday.

(Reporting by Jessica Jaganathan; Editing by Joseph Radford)

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