Released May 15, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's weekly Global Refining Report gives you the latest inside intelligence on outages, derates, shutdowns, closures, delays and more. Tomorrow's news today...
Market Commentary:
Fireworks before the 4th of July. Oh my. There are those in the market who believe as the June contract goes to expiry, we might again see pressure to the downside, leading to *gasp "Say it ain't so Joe" negative prices yet again. I, however, am not one as WTI is at 29.65 and continuing to surf this "wave of positivism."
However, I do see there needs to be some temperance and a dash of realism. Just like the International Energy Agency (IEA), which, in its recent report spoke to the uncertain factors of OPEC+ compliance and how countries will open back up with a likely resurgence of COVID-19 cases. And, if that is not enough, we still have the financial distress looming as all this "free money" in the form of stimulus floods the market. Heck, even the U.S. is talking about negative rates. Well maybe, not really. Who knows.
So yes, there is a bout of good news and bloody April is in our rear view. "Storagemaggedon" looks not to befall us as we see some semblance of a balancing supply and demand through production cuts -- hallelujah! The G20 countries came and worked together -- who would have thunk it to be so -- and cars are getting back on the road -- thanks Apple mobility leading indicator. But the IEA does indicate oil demand for 2020 to be at 91.2 million barrels per day (BBL/d) with supply at a shocking 88 million BBL/d. If that plays out -- like the MLB might on the July 4th weekend -- then the oil industry will step into new beginnings. A new normal.
Therefore, within this Global Refining Report, IIR hopes to shed some light on what is transpiring from a Refinery Operations perspective as the Global Refining Index (working with ADUs) illustrates what is happening to crude operationally available capacity and how refineries are derating and operating overall in these times. The Global Refinery Maps depict the COVID-19 impact as well as the non-COVID-19 outages. Also, you will find both a Capacity Offline table to quickly display weekly what the available operating capacity by region is, not to mention Area Charts, which visualize COVID-19 impact and non-COVID-19 capacity offline in Asia, Europe and North America.
Petroleum Refining Highlights:
May 15, 2020 Phillips 66 has initiated a gradual production rate increase from a 35 % reduction to now operating at a 20 % reduction at its 242,000 BBL/d Westlake, Louisiana, Lake Charles Refinery as a result of the COVID-19 pandemic. At this time, Phillips 66 is anticipating demand to increase as the state reopens this upcoming week and will then reevaluate plans to return to normal operations.
May 15, 2020 Marathon Petroleum continues with plans to begin a turnaround on May 25, 2020 on the 62,000-BBL/d Ultraformer UU4, 60,000-BBL/d Ultracracker, the 60,000-BBL/d RHU Residual HF, ARU Sulfolane Unit and 31,500-BBL/d HF Alkylation 3 unit at its 437,000-BBL/d Galveston Bay Refinery in Texas City, Texas. The refinery is still derated due to low demand for fuel and product into the month of June 2020 due to the COVID-19 pandemic and is still being evaluated.
May 15, 2020 ENAP Refinerias remains on schedule to undergo a 40-day maintenance turnaround on the 50,300 BBL/d Crude Topping 1 unit at its 115,700-BBL/d Bio, Chile refinery, starting May 16, 2020. The 13,000-BBL/d Delayed Coker and the 9,000-BBL/d HT (naphtha, gasoline, diesel), shut down since April 17, 2020, will remain offline until the end of June 2020. The refinery continues operating at 65% of normal capacity due to COVID-19. It is expected to continue as such until maintenance works are completed.
May 15, 2020 IIR has confirmed that Raizen Argentina continues with a shutdown of its 93,000-BBL/d Buenos Aires Refinery in Dock Sud due to the reduction in product demand and insufficient storage capacity brought about by COVID-19. IIR has learned that work shifts are gradually returning to normal and early expectations are to begin a restart of the Crude Area, followed by Cracking Units beginning by next week in order to have the facility running by early June. However, the final decision on the refinery startup will depend on market conditions.
May 15, 2020 IIR has confirmed Galp Energia SGPS SA continues with the shutdown of its Fuel and Conversion Areas at its 120,285-BBL/d Matosinhos (Porto), Portugal refinery. The 95,285-BBL/d Crude 2, 9,800-BBL/d Gasoil HDS 1, 28,000-BBL/d Gasoil HDS 2, 14,600-BBL/d Platformer (1300), 10,200-BBL/d Platformer (3300), 13,100-BBL/d Vacuum, 17,000-BBL/d Visbreaker and associated units have been shut down since April 5, 2020 due to COVID-19, and are expected to remain as such until end of May 2020.
May 15, 2020 IIR has confirmed that Saras Spa has extended a planned maintenance at its 300,000-BBL/d Saras Refinery in Italy. The 86,000-BBL/d FCCU K1 and 115,000-BBL/d Topping 1 turnaround, which was originally scheduled to be completed in the end of March 2020, was extended due to COVID-19 workplace regulations and is now expected to be completed in June 2020.
Map of Global Refineries impacted by COVID-19/non-COVID -- Ongoing Offline Events:
Global Refining Index
Industrial Info is releasing a Global Refining Index (GRI) to illustrate how much refinery capacity is offline versus normal operating capacity. Illustrating with an operating% at a world region - market region level how healthy refineries are (see graphic below).
Refining Available Capacity
Global Regional Available Operational Capacity. Current vs. Previous. COVID-19 Impact & non-COVID related outages
Map of Global Refineries impacted by COVID-19/non-COVID - Future (Delayed) Offline Events
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Market Commentary:
Fireworks before the 4th of July. Oh my. There are those in the market who believe as the June contract goes to expiry, we might again see pressure to the downside, leading to *gasp "Say it ain't so Joe" negative prices yet again. I, however, am not one as WTI is at 29.65 and continuing to surf this "wave of positivism."
However, I do see there needs to be some temperance and a dash of realism. Just like the International Energy Agency (IEA), which, in its recent report spoke to the uncertain factors of OPEC+ compliance and how countries will open back up with a likely resurgence of COVID-19 cases. And, if that is not enough, we still have the financial distress looming as all this "free money" in the form of stimulus floods the market. Heck, even the U.S. is talking about negative rates. Well maybe, not really. Who knows.
So yes, there is a bout of good news and bloody April is in our rear view. "Storagemaggedon" looks not to befall us as we see some semblance of a balancing supply and demand through production cuts -- hallelujah! The G20 countries came and worked together -- who would have thunk it to be so -- and cars are getting back on the road -- thanks Apple mobility leading indicator. But the IEA does indicate oil demand for 2020 to be at 91.2 million barrels per day (BBL/d) with supply at a shocking 88 million BBL/d. If that plays out -- like the MLB might on the July 4th weekend -- then the oil industry will step into new beginnings. A new normal.
Therefore, within this Global Refining Report, IIR hopes to shed some light on what is transpiring from a Refinery Operations perspective as the Global Refining Index (working with ADUs) illustrates what is happening to crude operationally available capacity and how refineries are derating and operating overall in these times. The Global Refinery Maps depict the COVID-19 impact as well as the non-COVID-19 outages. Also, you will find both a Capacity Offline table to quickly display weekly what the available operating capacity by region is, not to mention Area Charts, which visualize COVID-19 impact and non-COVID-19 capacity offline in Asia, Europe and North America.
Petroleum Refining Highlights:
May 15, 2020 Phillips 66 has initiated a gradual production rate increase from a 35 % reduction to now operating at a 20 % reduction at its 242,000 BBL/d Westlake, Louisiana, Lake Charles Refinery as a result of the COVID-19 pandemic. At this time, Phillips 66 is anticipating demand to increase as the state reopens this upcoming week and will then reevaluate plans to return to normal operations.
May 15, 2020 Marathon Petroleum continues with plans to begin a turnaround on May 25, 2020 on the 62,000-BBL/d Ultraformer UU4, 60,000-BBL/d Ultracracker, the 60,000-BBL/d RHU Residual HF, ARU Sulfolane Unit and 31,500-BBL/d HF Alkylation 3 unit at its 437,000-BBL/d Galveston Bay Refinery in Texas City, Texas. The refinery is still derated due to low demand for fuel and product into the month of June 2020 due to the COVID-19 pandemic and is still being evaluated.
May 15, 2020 ENAP Refinerias remains on schedule to undergo a 40-day maintenance turnaround on the 50,300 BBL/d Crude Topping 1 unit at its 115,700-BBL/d Bio, Chile refinery, starting May 16, 2020. The 13,000-BBL/d Delayed Coker and the 9,000-BBL/d HT (naphtha, gasoline, diesel), shut down since April 17, 2020, will remain offline until the end of June 2020. The refinery continues operating at 65% of normal capacity due to COVID-19. It is expected to continue as such until maintenance works are completed.
May 15, 2020 IIR has confirmed that Raizen Argentina continues with a shutdown of its 93,000-BBL/d Buenos Aires Refinery in Dock Sud due to the reduction in product demand and insufficient storage capacity brought about by COVID-19. IIR has learned that work shifts are gradually returning to normal and early expectations are to begin a restart of the Crude Area, followed by Cracking Units beginning by next week in order to have the facility running by early June. However, the final decision on the refinery startup will depend on market conditions.
May 15, 2020 IIR has confirmed Galp Energia SGPS SA continues with the shutdown of its Fuel and Conversion Areas at its 120,285-BBL/d Matosinhos (Porto), Portugal refinery. The 95,285-BBL/d Crude 2, 9,800-BBL/d Gasoil HDS 1, 28,000-BBL/d Gasoil HDS 2, 14,600-BBL/d Platformer (1300), 10,200-BBL/d Platformer (3300), 13,100-BBL/d Vacuum, 17,000-BBL/d Visbreaker and associated units have been shut down since April 5, 2020 due to COVID-19, and are expected to remain as such until end of May 2020.
May 15, 2020 IIR has confirmed that Saras Spa has extended a planned maintenance at its 300,000-BBL/d Saras Refinery in Italy. The 86,000-BBL/d FCCU K1 and 115,000-BBL/d Topping 1 turnaround, which was originally scheduled to be completed in the end of March 2020, was extended due to COVID-19 workplace regulations and is now expected to be completed in June 2020.
Map of Global Refineries impacted by COVID-19/non-COVID -- Ongoing Offline Events:
Global Refining Index
Industrial Info is releasing a Global Refining Index (GRI) to illustrate how much refinery capacity is offline versus normal operating capacity. Illustrating with an operating% at a world region - market region level how healthy refineries are (see graphic below).
Refining Available Capacity
Global Regional Available Operational Capacity. Current vs. Previous. COVID-19 Impact & non-COVID related outages
Map of Global Refineries impacted by COVID-19/non-COVID - Future (Delayed) Offline Events
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
