Industrial Info's Weekly Global Refining Impact Report

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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:
Stalling. OilPrice reports, "Crude oil hit four-month highs on Thursday, aided by a tightening market and a better-than-expected U.S. jobs report." The caveat is that the jobs survey took place before the latest Covid-19 wave and the associated closures.

Analysts still expect oil to face resistance to any further gains. "Gasoline has carried the load on recovery and demand, and it's not clear whether that could continue into August and September," Andrew Lebow, senior partner at Commodity Research Group, told Bloomberg. Oil prices retreated during midday trading on Friday.

Also, news is that OPEC+ is scheduled to ease production cuts in August after extending them for July, with sources telling Reuters that the group will likely refrain from an extension.

So we find ourselves in no man's land -- with our rally ride stalling -- somewhere between the cities of fear, uncertainty, doubt and hope. Though rumor has it that many are already planning on migrating out of hope, as opportunities of sustainable recovery are dim here in 2020...

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 de-rating 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
July 2, 2020 IIR has confirmed that Valero remains processing at 80% capacity at its 265,000-barrel-per-day (BBL/d) Jean Gaulin Canada refinery. The facility had been operating at 50% since the end of March 2020 due to COVID-19 pandemic concerns affecting product demand. Separately, a 55-day major turnaround on the 170,000-BBL/d Crude 1, 32,000-BBL/d Reformer, 70,000-BBL/d Diesel Hydrotreater and 40,000-BBL/d Kerosene Hydrotreater units remain scheduled to take place in March or April 2021.

July 3, 2020 IIR has confirmed that PDVSA restarted, in late June, 2020, the 120,000-BBL/d Crude 2 at its 625,000-BBL/d Amuay, Venezuela refinery. The 85,000-BBL/d Crude 1 continues online; heat exchanger repairs on the 120,000-BBL/d Crude 4 are still being performed; the 180,000-BBL/d Crude 5 remains offline due to the COVID-19 pandemic and export restrictions, while the 120,000-BBL/d Crude 3, offline since late December 2017, will be kept as such until early 2021. Planned repairs on the offline 80,000-BBL/d FCCU, accelerated due to COVID-19 pandemic, are to be completed in approximately 2 weeks, with the unit coming online by mid-July.

July 3, 2020 CNOOC Huizhou Refining Company remains on schedule for a 50-day, planned area-wide turnaround at its 440,000-BBL/d Huizhou China Refinery beginning on October 10, 2020. Major units within the Area 5 - Area 8 include the 200,000-BBL/d CDU 2, 96,000-BBL/d FCCU 2, 68,000-BBL/d Diesel Hydrotreater 2, 48,000-BBL/d Gasoline Hydrotreater 2 and 36,000-BBL/d Reformer 2 (CCR 2). Expectations are to complete repairs and restart the units by November 28, 2020.

July 3, 2020 PetroChina Dalian Petrochemical Company, on July 2, 2020, has successfully restarted its three CDUs (410,000-BBL/d combined capacity), three FCCUs (116,000-BBL/d combined capacity), and two Reformers (56,000-BBL/d combined capacity) at its 410,000-BBL/d Dalian Refinery, China. The units were under the 55-day planned maintenance shutdown since May 10, 2020. The 120,000-BBL/d CDU 1 and 18,000-BBL/d FCCU 2, which were shut down as part of the turnaround on April 8, 2020, were also restarted at the same time with the other units.

July 2, 2020 Caltex Refineries (QLD) Pty Limited continues an Unplanned Turnaround & Inspection (T&I) of its 110,000-BBL/d Lytton refinery in Queensland, Australia, which began on May 8, 2020 in response to COVID-19-related fuel demand destruction. Major units include the 55,000-BBL/d Crude 1, 55,000-BBL/d Crude 1B, 5,000-BBL/d FCCU, 3,500-BBL/d Alky, 23,000-BBL/d Reformer, 23,500-BBL/d DHT1, 23,500-BBL/d DHT 2, 23,000-BBL/d Reformer Feed Hydrotreater and 10,000-BBL/d Isomerization Unit. Although normal operations were originally scheduled to resume by September 28, 2020, this may be brought forward as early as August 30. The company continues to evaluate the situation, and the return to normal operations will depend on the business outlook within the next three months.

CLICK ON THE MAPS AND GRAPHS BELOW FOR A LARGER VIEW

Map of Global Refineries impacted by COVID-19/non-COVID -- Ongoing Offline Events


Global Refining Index
Industrial Info's Global Refining Index (GRI) illustrates 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 graphics below).









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.