Released August 31, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--IIR's weekly Global Refining Report gives you the latest inside intelligence on outages, derates, shutdowns, closures, delays and more.
And now there is an interactive, dynamic Global Refining Capacity Dashboard available to further power your refinery capacity research.
IIR has formalized an alliance with Refinery Calc, which will play an integral role in producing IIR's Global Refining MarketIntel Platform -- the first of its kind in the industry.
This platform is part of a more comprehensive IIR Global MarketIntel Platform.
Just ask iirteam@iirenergy.com for further information.
Market Commentary:
Where do we go from here? What lies in store? Reuters reports both benchmarks notched weekly gains of about 1.5%, with WTI rising for a fourth straight week. The benchmarks hit five-month highs during the week as U.S. producers cut crude output ahead of Hurricane Laura at a rate close to the level of 2005's Hurricane Katrina.
"The oil trade has been featured by strong advances at the start of the week as a sizable amount of storm premium was pumped into the market ahead of Hurricane Laura, followed by a major erasure of hurricane premium following the storm's arrival as limited impact on offshore crude production or refinery activity was indicated," said Jim Ritterbusch, president of Ritterbusch and Associates.
The oil market has had an unusually long spell of low volatility, analyst Eugen Weinberg at Commerzbank said, in contrast with stock markets.
"It didn't even react to a weaker dollar. There's no impulse in either direction. It has seldom had so little volatility for such a long period, especially given the dynamic situation on the demand and supply sides," Weinberg said.
So it seems as if nothing is known for sure. However, likely geopolitical tensions will be rising as OilPrice reports that China is turning its back on Saudi crude [this after news surfaced that Saudi Arabia might not move forward with a major oil/petrochemical project in the Middle Kingdom].
For we know the spring "Saudi and Russia Price War" started in large part over concerns of their eroding market share - especially in China, losing such to those pesky shale upstarts in the U.S. How dare they?
Now it is U.S. crude making its way to China, displacing Saudi crudes -- obviously as part of Phase I of the U.S.-China Trade deal -- even when the U.S and China relationship itself is on rocky ground.
It just seems like something is going to boil over somewhere in the world. More so when one considers OPEC+ is increasing its supply, while trying to maintain compliance to agreed-upon cuts amongst its members, who are struggling with fiscal budget policies within their respective nations under these low-price scenarios.
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. Area Charts visualize COVID-19 Impact and non-COVID-19 capacity offline in Asia, Europe and North America.
Petroleum Refining Highlights:
For more information on the impact of Hurricane Laura on the Gulf of Mexico's Oil & Gas Industry, see August 28, 2020, article - Hurricane Laura Industrial Plant Impacts, a Weather Impact Update by Industrial Info
Oil & Gas -- Offshore, 1.6 million barrels per day (BBL/d) of oil production and 1.6 billion cubic feet per day (Bcf/d) of gas production remain offline. Inspection crews for most platforms will be heading out today to access damage shortly. We see no real capacity returning online so far today.
Enterprise Products has begun restarting operations at the 85,000-BBL/d NGL Train IV train at its Mont Belvieu, Texas, NGL Fractionator Complex after idling the unit on Wednesday ahead of the hurricane.
Refining-- Damage and inspection efforts are ongoing at two refineries, with a total crude oil processing capacity of 682,000 BBL/d, which were in the direct path of the hurricane in Lake Charles; early reports suggest the facilities will be down for several weeks for needed repairs. In addition, efforts are underway to restart the four refineries in the Beaumont/Port Arthur area over the weekend and the lone refinery in Houston, Texas, which were all shut in preparation for the storm.
August 28, 2020 Valero restarted the 18,000-BBL/d Delayed Coker at its 220,000-BBL/d Bill Greehey Refining Complex East Side in Corpus Christi, Texas, after shutting down the unit on August 26.
August 28, 2020 - IIR has confirmed that Repsol Peru continues to run its 110,000-BBL/d La Pampilla, Peru refinery at reduced rates due to COVID-19 pandemic concerns. The 30,000-BBL/d Crude Distillation 1 and 24,000-BBL/d Vacuum 1 units remain offline, while the 80,000-BBL/d Crude Distillation 2 is running at about 70% capacity. The planned repairs on the 2,800-BBL/d Unifining unit, which began in early August, were completed on August 21. The remaining operational units are running at about 50% of normal capacity. The company expects to maintain those rates until early October.
August 28, 2020 - IIR has confirmed Repsol Petroleo SA is running its 220,000-BBL/d Cartagena, Spain refinery at about 80% capacity due to the COVID-19 pandemic. A major planned turnaround on the 120,000-BBL/d Crude (Topping 4) will be performed in 2023 instead of 2021. A major turnaround on the Lubes Area will be carried out in first-quarter 2021. The Conversion Area, which includes the 45,000-BBL/d Hydrocracker unit, was initially planned to go offline for major repairs in first-quarter 2021, but instead will be taken offline by the fourth quarter of the year.
August 28, 2020 - IIR has confirmed that Eni Spa continues with the economic shutdown of its 28,000-BBL/d HDC2, 42,000-BBL/d FCC and 24,300-BBL/d Visbreaker units at its 247,000-BBL/d Sannazzaro Refinery in Italy. The planned shutdown, which began in early March, is tentatively expected to continue until the end of September. Meanwhile, the 116,000-BBL/d Topping 1 and 131,000-BBL/d Topping 2 units, which had been operating at reduced rates of 40% since May, also was expected to continue until the end of September.
August 28, 2020 - IIR has confirmed that Bashneft ANK OAO has started a planned maintenance shutdown of the 138,000-BBL/d ABT-6 (Crude 2), 82,800 ABT-6 (Vacuum 2), 39,000-BBL/d Visbreaker (KU-1), 21,400-BBL/d Hydrotreater L-24-5 (LB), 21,400-BBL/d Gasoline Hydrotreater L-24-5 (PB), 14,000-BBL/d MTBE, 15,038-BBL/d Reformer L-35-5 and associated units at its 138,000-BBL/d Ufa Oil Refinery in Russia. The planned turnaround kicked off on August 26, and completion is expected by the end of September.
August 28, 2020 - Pakistan Refinery Limited, on August 26, was forced to shut down its 55,000-BBL/d Karachi Refinery in Pakistan due to a pipeline rupture. The units tentatively are expected to be back online by September 2. Major units include the lone Crude Distillation Unit, 17,500-BBL/d Distillate HDS, 5,000-BBL/d Isomerization and 2,800-BBL/d Reformer Unit.
August 28, 2020 - Formosa Petrochemical Corporation (FPCC) began repairs on the 84,000-BBL/d RFCC 1 at its 540,000-BBL/d Mailiao Taiwan Refinery on August 10 following a July 15 fire and explosion that damaged an 80,000-BBL/d ARDS 2 unit. Restart for both the ARDS 2 and RFCC 1 is expected by January 15, 2021.
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, when compared with normal operating capacity. (See graphics below.)
Global Regional Available Operational Capacity. 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.
And now there is an interactive, dynamic Global Refining Capacity Dashboard available to further power your refinery capacity research.
IIR has formalized an alliance with Refinery Calc, which will play an integral role in producing IIR's Global Refining MarketIntel Platform -- the first of its kind in the industry.
This platform is part of a more comprehensive IIR Global MarketIntel Platform.
Just ask iirteam@iirenergy.com for further information.
Market Commentary:
Where do we go from here? What lies in store? Reuters reports both benchmarks notched weekly gains of about 1.5%, with WTI rising for a fourth straight week. The benchmarks hit five-month highs during the week as U.S. producers cut crude output ahead of Hurricane Laura at a rate close to the level of 2005's Hurricane Katrina.
"The oil trade has been featured by strong advances at the start of the week as a sizable amount of storm premium was pumped into the market ahead of Hurricane Laura, followed by a major erasure of hurricane premium following the storm's arrival as limited impact on offshore crude production or refinery activity was indicated," said Jim Ritterbusch, president of Ritterbusch and Associates.
The oil market has had an unusually long spell of low volatility, analyst Eugen Weinberg at Commerzbank said, in contrast with stock markets.
"It didn't even react to a weaker dollar. There's no impulse in either direction. It has seldom had so little volatility for such a long period, especially given the dynamic situation on the demand and supply sides," Weinberg said.
So it seems as if nothing is known for sure. However, likely geopolitical tensions will be rising as OilPrice reports that China is turning its back on Saudi crude [this after news surfaced that Saudi Arabia might not move forward with a major oil/petrochemical project in the Middle Kingdom].
For we know the spring "Saudi and Russia Price War" started in large part over concerns of their eroding market share - especially in China, losing such to those pesky shale upstarts in the U.S. How dare they?
Now it is U.S. crude making its way to China, displacing Saudi crudes -- obviously as part of Phase I of the U.S.-China Trade deal -- even when the U.S and China relationship itself is on rocky ground.
It just seems like something is going to boil over somewhere in the world. More so when one considers OPEC+ is increasing its supply, while trying to maintain compliance to agreed-upon cuts amongst its members, who are struggling with fiscal budget policies within their respective nations under these low-price scenarios.
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. Area Charts visualize COVID-19 Impact and non-COVID-19 capacity offline in Asia, Europe and North America.
Petroleum Refining Highlights:
For more information on the impact of Hurricane Laura on the Gulf of Mexico's Oil & Gas Industry, see August 28, 2020, article - Hurricane Laura Industrial Plant Impacts, a Weather Impact Update by Industrial Info
Oil & Gas -- Offshore, 1.6 million barrels per day (BBL/d) of oil production and 1.6 billion cubic feet per day (Bcf/d) of gas production remain offline. Inspection crews for most platforms will be heading out today to access damage shortly. We see no real capacity returning online so far today.
Enterprise Products has begun restarting operations at the 85,000-BBL/d NGL Train IV train at its Mont Belvieu, Texas, NGL Fractionator Complex after idling the unit on Wednesday ahead of the hurricane.
Refining-- Damage and inspection efforts are ongoing at two refineries, with a total crude oil processing capacity of 682,000 BBL/d, which were in the direct path of the hurricane in Lake Charles; early reports suggest the facilities will be down for several weeks for needed repairs. In addition, efforts are underway to restart the four refineries in the Beaumont/Port Arthur area over the weekend and the lone refinery in Houston, Texas, which were all shut in preparation for the storm.
August 28, 2020 Valero restarted the 18,000-BBL/d Delayed Coker at its 220,000-BBL/d Bill Greehey Refining Complex East Side in Corpus Christi, Texas, after shutting down the unit on August 26.
August 28, 2020 - IIR has confirmed that Repsol Peru continues to run its 110,000-BBL/d La Pampilla, Peru refinery at reduced rates due to COVID-19 pandemic concerns. The 30,000-BBL/d Crude Distillation 1 and 24,000-BBL/d Vacuum 1 units remain offline, while the 80,000-BBL/d Crude Distillation 2 is running at about 70% capacity. The planned repairs on the 2,800-BBL/d Unifining unit, which began in early August, were completed on August 21. The remaining operational units are running at about 50% of normal capacity. The company expects to maintain those rates until early October.
August 28, 2020 - IIR has confirmed Repsol Petroleo SA is running its 220,000-BBL/d Cartagena, Spain refinery at about 80% capacity due to the COVID-19 pandemic. A major planned turnaround on the 120,000-BBL/d Crude (Topping 4) will be performed in 2023 instead of 2021. A major turnaround on the Lubes Area will be carried out in first-quarter 2021. The Conversion Area, which includes the 45,000-BBL/d Hydrocracker unit, was initially planned to go offline for major repairs in first-quarter 2021, but instead will be taken offline by the fourth quarter of the year.
August 28, 2020 - IIR has confirmed that Eni Spa continues with the economic shutdown of its 28,000-BBL/d HDC2, 42,000-BBL/d FCC and 24,300-BBL/d Visbreaker units at its 247,000-BBL/d Sannazzaro Refinery in Italy. The planned shutdown, which began in early March, is tentatively expected to continue until the end of September. Meanwhile, the 116,000-BBL/d Topping 1 and 131,000-BBL/d Topping 2 units, which had been operating at reduced rates of 40% since May, also was expected to continue until the end of September.
August 28, 2020 - IIR has confirmed that Bashneft ANK OAO has started a planned maintenance shutdown of the 138,000-BBL/d ABT-6 (Crude 2), 82,800 ABT-6 (Vacuum 2), 39,000-BBL/d Visbreaker (KU-1), 21,400-BBL/d Hydrotreater L-24-5 (LB), 21,400-BBL/d Gasoline Hydrotreater L-24-5 (PB), 14,000-BBL/d MTBE, 15,038-BBL/d Reformer L-35-5 and associated units at its 138,000-BBL/d Ufa Oil Refinery in Russia. The planned turnaround kicked off on August 26, and completion is expected by the end of September.
August 28, 2020 - Pakistan Refinery Limited, on August 26, was forced to shut down its 55,000-BBL/d Karachi Refinery in Pakistan due to a pipeline rupture. The units tentatively are expected to be back online by September 2. Major units include the lone Crude Distillation Unit, 17,500-BBL/d Distillate HDS, 5,000-BBL/d Isomerization and 2,800-BBL/d Reformer Unit.
August 28, 2020 - Formosa Petrochemical Corporation (FPCC) began repairs on the 84,000-BBL/d RFCC 1 at its 540,000-BBL/d Mailiao Taiwan Refinery on August 10 following a July 15 fire and explosion that damaged an 80,000-BBL/d ARDS 2 unit. Restart for both the ARDS 2 and RFCC 1 is expected by January 15, 2021.
CLICK ON THE MAPS AND GRAPHS BELOW FOR A LARGER VIEW
Global Refining Index
Industrial Info's Global Refining Index (GRI) illustrates how much refinery capacity is offline, when compared with normal operating capacity. (See graphics below.)
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.
