Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

UPDATE 3-Hengyuan, Petron unable to offload crude oil at Malaysia's Port Dickson

Published 10/22/2019, 08:49 PM
© Reuters.  UPDATE 3-Hengyuan, Petron unable to offload crude oil at Malaysia's Port Dickson
SHEL
-
PCOR
-
PTMR
-
HENY
-

(Adds Hengyuan official comment)
SINGAPORE, Oct 22 (Reuters) - Refineries at Port Dickson on
Peninsular Malaysia's west coast are unable to receive crude oil
after a port facility that carries crude from the ships to the
plants broke down.
A system known as a single point mooring (SPM) unit, a
loading buoy anchored offshore that allows tankers to offload
their crude via pipeline to the refineries, has been out of
service, the refinery operators said.
The SPM connects to a refinery operated by Hengyuan Refining
Company Bhd (HRC) HENY.KL , a subsidiary of China's Shandong
Hengyuan Petrochemical Co, and a second plant owned by the
Philippines' largest refiner Petron Corp PCOR.PS .
Petron Malaysia Refining & Marketing Bhd (PMRMB) PTMR.KL
confirmed that its Port Dickson refinery cannot receive crude
oil to produce refined products due to an SPM problem, and said
it had taken necessary measures to import more refined products
to meet its needs.
The SPM is anticipated to return to normal operations by
early November and the company's temporary inability to process
crude oil at the refinery will not impact its supply of finished
products to the market, PMRMB said. A Shandong-based official with Hengyuan's parent company
confirmed the refiner was replacing a broken valve of the
pipeline of the SPM unit, but said he has no knowledge how long
the repair work would take.
Hengyuan's refinery has a capacity of 156,000 barrels per
day (bpd), while Petron's refinery has a crude distillation
capacity of 88,000 bpd, according to their websites.
The outage appears to have delayed two ships that were
scheduled to unload at the port, shipping data on Refinitiv
Eikon showed.
Royal Dutch Shell RDSa.L has chartered the Maran Plato, a
Suezmax-sized tanker, to discharge on Oct. 18 and the Torm
Valborg, an Aframax-sized vessel, on Oct. 16, the data showed.
But the tankers were still anchored off the port laden with
crude as of Tuesday, the data showed.
Shell declined to comment.
When contacted by Reuters, the Port Dickson Marine
Department said the companies that have operations in Port
Dickson run their own mooring operations and the department was
not aware of any delay in shipments as they did not receive any
complaints.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.