REFINERY NEWS ROUNDUP: Minimal reliance on Russian crude in Asia

Asian refiners have so far been broadly unfazed by the the Russia-Ukraine conflict as Russian oil makes up only a small portion of many Asian countries' refinery feedstock import baskets, with many alternatives seen available.

As Russian crude makes up only 1-6% of overall crude imports by Asian economies, excluding China, major refiners across the region indicated that it wasn't too difficult setting up contingency plans, with several US, Middle Eastern, West African and Southeast Asian crude grades set to be included in the list of potential replacement grades for Russian crudes that the companies regularly procure.

Indian Oil Corp. has asked its crude suppliers to stop offering Russian and Kazakh crudes to avoid any payment and insurance risks caused by international sanctions on Russia after its military invasion of Ukraine, company officials told S&P Global Platts. India, the world's third-largest crude importer, imported less than 1% of its crude imports from Russia in 2021. In February, before the invasion started, IOC had contracted 2 million mt of high sulfur Russian Urals grade for April delivery. Nayara Energy also took 2 million mt of Urals for delivery in April.

India's minimal dependence on Russian crude means that the South Asian oil buyer can weather any potential supply disruption from Russia. Analysts said Indian buyers are increasingly becoming cautious about shipment logistics and delays of cargoes from the Black Sea region, which may prompt them to temporarily look for replacement cargoes from the Middle East.

Meanwhile, closures remained in focus.

** New Zealand's Refining NZ said that work to prepare the site and staff at its Marsden Point refinery for the transition to a terminal is "well advanced". Marsden Point refinery will convert operations to an import-only fuel terminal Channel Infrastructure from April 1, 2022. In November, the company's board took the final investment decision confirming the change of operations to a terminal called Channel Infrastructure. The company said that it has contracted additional private storage capacity of 100 million liters in addition to the 180 million liters of shared import terminal capacity. "In 2022, the immediate priority is to safely deliver the import terminal conversion, transition our organisation from a refinery to terminal business and to support our people through the transition and into new employment," Refining NZ said in its 2021 report. It has previously said that in the months preceding the conversion it will focus on "the ongoing operation of our refinery" and the "safe shutdown and decommissioning of refinery assets." Separately, Refining NZ said in December 2021 that together with Fortescue Future Industries, it is studying the "feasibility of production, storage, distribution, and export of industrial-scale green hydrogen from Marsden Point." Work on the study will begin in early 2022.

** ExxonMobil Australia will integrate the common infrastructure between the Altona refinery in Melbourne and the new Mobil Melbourne fuel import and storage terminal over the course of 2022 with the conversion expected to be carried "over the next few years". The infrastructure that is not part of the future terminal will be safely decommissioned. The process of shutting down the refinery started at the end of August 2021 after the company announced its plans to close it in Feb. 2021. Most facilities have been halted but some parts of the refinery, including the flares and boilers will continue to operate in 2022 "to ensure a safe site".

** BP Australia is undertaking a feasibility study into the production of green hydrogen at the site of the Kwinana refinery. It will work on the project in partnership with Macquarie Capital and with funding from the Western Australian government. The company plans to repurpose the site as a clean energy hub, "which will include the production of renewable fuels," it said. BP also said it was "already underway with plans to develop a renewable fuels plant at the site, producing sustainable aviation fuel and renewable diesel." BP announced its plan to shut the refinery in October 2020 and wind down refining activities over the following six months. Refining activities were completed by March 2021.

In other news, product demand recovery remains mixed in Asia-Pacific.

** India's gasoil consumption in January fell 13% on the month to a four-month low of 6.37 million mt, latest preliminary data from the Petroleum Planning and Analysis Cell showed. Gasoil consumption in India was last lower in September 2021, when it was recorded at 5.52 million mt, historical PPAC data showed. On a year-on-year basis, consumption was down 6.5%, the data showed. The drop in demand came amid the third wave of COVID-19 in India, during which a steep incline in infections through early January led to the implementation of localized movement restrictions, weighing down demand, sources said. However, with the third wave proving to be milder than the previous two, and the case count falling rapidly since late January, domestic demand is expected to rebound quickly in the near term.

** Pakistan's oil consumption rose 10% on the year to 1.54 million mt in February, latest data from the country's Oil Companies Advisory Council showed March 2, aided by improved automobile sales and a pick up in demand from the farm sector. In line with higher consumption, motor gasoline sales in February rose 4.2% to 650,000 mt, while sales of diesel and fuel oil, or furnace oil, rose 7.6% and 28% to 590,000 mt and 220,000 mt, respectively, the data showed.

** Crude throughput at Pakistan's National Refinery Ltd during the six months ended Dec. 31, 2021 declined to 66% compared with 68% in the corresponding period a year ago, according to a half-yearly report posted on the company's website. Gross Refining Margins picked up during the period due to an increase in economic activity around the world, the report said. Sales of fuel oil, also known as furnace oil, declined due to lower demand for electricity during the period, which adversely affected the performance of the fuel segment. National Refinery commenced a turnaround on Dec. 24, 2021 as planned, which was successfully completed during January. Due to lower demand for bitumen in the domestic market, the refinery exported 21,893 mt during the period compared to 3,892 mt in the corresponding year-ago period. The lubes segment operated at 87% as compared to 75% during the same period last year.

** Pakistan's Attock refinery reported operating capacity of 78% in the six months ended Dec. 31 -- its financial first half -- compared with 76% in the year-ago period. It also said it supplied around 878,000 mt of petroleum products, down from 898,000 mt sold in the same period of 2020. Due to power utilities not lifting a higher amount of fuel oil, also known as furnace oil, there was reduced ullage at a number of Pakistan's refineries, the report said. The refinery also said in the report, which covers results from the first half, that it was awaiting the approval of a draft refining policy by the government, which is expected to provide some incentives and financial support to refineries in the process of upgrades, which are highly capital intensive. Attock refinery also noted that the improvement in spreads between prices of products and crude oil which started during the first quarter of the financial year (July-September) continued during the second quarter. However, the advantage of this improvement was largely neutralized by an increase in the prices of energy, chemicals and associated freight costs.

** The Pakistan refining sector is set to halt plans to export fuel oil in anticipation of domestic utilities companies lifting the commodity to meet the rising demand for electricity during the summer season, an official in the Pakistan Ministry of Energy said. Rising inventories at refineries in January and February led the Pakistan government to allow Pak-Arab Refinery Company Ltd., or PARCO, to export up to 50,000 mt of fuel oil. Of this, Kpler data showed that 38,000 mt of HSFO loaded from Port Qasim on Feb. 15, destined for Fujairah. Apart from PARCO, fellow refiner Pakistan Refinery Ltd. was also working on an option to export fuel oil, known as furnace oil, and was seeking buyers in the international market, but has since shelved the plan with summer season around the corner, said the director of the company. Higher fuel oil inventories and dwindling storage facilities towards the end of 2021 forced a slew of refinery closures in December.

Meanwhile companies in the region are turning increasingly to renewables.

** Shell has become the first supplier of sustainable aviation fuel in Singapore, with the move representing a major milestone for the Asian aviation industry as the region readies to curb its carbon footprint. The SAF supplied is made from waste products and sustainable feedstocks and will be blended with conventional jet fuel, Shell said in a statement. "The first batch of SAF is blended in Europe and aims to test and verify the supply chain of SAF that Shell has established in Asia," it said, adding that the company seeks to commence blending at its Singapore facilities for subsequent batches.

** India's No. 1 state-run refiner Indian Oil Corp. aims to set up 10,000 Electric Vehicle charging stations in the next three years, the company said. These charging stations aim to provide a seamless charging experience to EV users, in sync with India's quest for green mobility. India, the world's third-biggest crude importer and consumer, has set a goal of net-zero carbon emissions by 2070. So far, IOC has achieved the milestone of putting up 1,000 EV charging stations, spread over 500 towns and cities of India, Asia's third-largest economy. In 2017, IOC set up its first EV charging station at Nagpur in western India. IOC is also undertaking a host of initiatives to minimize its carbon footprint and that of its customers. It has started 'Zero Emission Electric Mobility,' a hybrid microgrid-enabled clean energy EV charging solution, at a fuel station in the southern city of Bangalore. The hybrid microgrid used for charging EVs at IOC's fuel stations comprises solar power, battery storage and grid power.

** Vietnam's Nghi Son was running at between 55-60% of capacity in February due to financial difficulties, Thanh Nien Online reported, citing a report from the Ministry of Industry and Trade, which has been based on a report from Nghi Son Refinery and Petrochemical (NSRP), the operator of the plant.In January, Nghi Son had had to slash its operation rate to 80% of its capacity from around 110% previously. NSRP has a plan to raise the run rates to 100% between the middle of March and the end of May this year. However, it is not clear how the refinery will operate after May. Meanwhile, some units were halted at Vietnam's Nghi Son refinery Feb. 21 following a power outage, a source at Nghi Son Refinery and Petrochemical said Feb. 22. No further details were available. According to traders, the complex which comprises a 200,000 mt/year benzene extraction unit and a 700,000 mt/year PX unit has been affected.

NEW AND ONGOING MAINTENANCE

UPGRADES

LAUNCHES

New and ongoing maintenance

New and revised entries

Asia-Pacific

** South Korean refiner S-Oil plans to shut its 240,000 b/d No. 2 CDU at Onsan for one month from early March for turnaround. In addition to No. 2 CDU, the company plans to shut its No. 1 residue fluid catalytic cracker with a capacity of 73,000 b/d for maintenance this year.

** Petron plans to shut its Bataan refinery in the Philippines from early Q2 for one month, a source close to the company said Feb. 21. "Should be early Q2, the exact date is not fixed yet...having turnaround in Q2 for 1 month," the source said.

** India's Reliance is planning maintenance at Jamnagar in Q3, according to trading sources. The maintenance has originally been planned for March, but has been deferred.

Existing entries

Asia-Pacific

** South Korean refiner Hyundai Oilbank plans to shut its No.1 crude distillation unit for several weeks over April-May for turnaround at Daesan while seeking to maintain high crude throughput to take advantage of strong cracking margins. It operates two CDUs with a combined capacity of 520,000 b/d -- No. 1 with 160,000 b/d and No. 2 with 360,000 b/d -- at its Daesan complex on the country's west coast. "The company will not shut the other CDU for maintenance this year so as to keep its crude run rate high as refining margins have been improving," an official said.

** Taiwan's Formosa Petrochemical planned to shut the 180,000 b/d delayed coker at its 540,000 b/d Mailiao refinery on Jan. 27, after a fire broke out at a 36,000 b/d delayed coker on Jan. 21, a company official told S&P Global Platts on Jan. 25. The fire broke out at the delayed coker on Jan. 25 and it was put out within 30 minutes, the official said. While the delayed coker stopped its operation, other units are operating, the official added. The company, however, is going to reduce its crude throughput by moving forward the maintenance schedule of the No. 1 CDU as the delayed coker remains shut, according to the official. The No. 1 CDU was originally scheduled to carry out regular maintenance from early March. "The CDU will be shut until the delayed coker restarts operation," said the official. Formosa has only one delayed coker.

** South Korea's top refiner SK Innovation plans to shut its No. 1 crude distillation unit with a capacity of 60,000 b/d at its main complex in Ulsan on the country's southeast coast for a month between March and April 2022 for regular maintenance, a company official said. SK Energy operates the Ulsan complex that runs five CDUs with a combined capacity of 840,000 b/d -- 60,000 b/d No. 1 CDU, 110,000 b/d No. 2 CDU, 170,000 b/d No. 3 CDU, 240,000 b/d No. 4 CDU, and 260,000 b/d No. 5 CDU. SK Innovation has focused on raising utilization rates of upgraders to maximize profitability, the official said, noting that its 64,000 b/d No. 1 residue fluid catalytic cracker and its 90,000 b/d No. 2 RFCC were run at 90% in Q3, compared with 67% and 86% a year earlier, respectively, and 79% and 102% in Q2, respectively.

India

** India's Bharat Petroleum Corp. is planning to shut one crude distillation unit (CDU No.1 with 120,000 b/d capacity) and an associated unit train for routine maintenance at its Mumbai refinery from mid-May, a company source said. The No. 2 CDU at Mumbai will continue to operate, although overall throughput at the refinery will be lower, the source said, adding that the plans were subject to the omicron variant not leading to a large spike in infections in India. A turnaround at a smaller unit at the refinery is also planned, at a 10,000 mt/day diesel hydrotreater, from mid-July for approximately a month, the source said.

** India's Mangalore Refinery and Petrochemicals has planned a short maintenance shutdown in the first quarter of the next fiscal year starting April 2022, company officials said. The refinery has no plans in place to carry out any maintenance shutdown-related activities till the end of the current fiscal in March 2022.

** India's Kochi refinery has no plans to carry out any maintenance shutdown program in fiscal year 2021-22 (April-March). The next maintenance shutdown will be for 30 days to carry out an annual turnaround due every four years. The annual turnaround would be in the second half of 2022-23.

** India's state-run Bharat Petroleum Corp Ltd-owned Bina refinery in central India will have a planned shutdown in 2022. The shutdown will be for regular maintenance and comes after four years. "The duration and magnitude of the shutdown are still being worked out," said a senior official at the refinery.

Upgrades

New and revised entries

** Pakistan's Attock refinery reiterated in its latest financial report that it was in the process of upgrades, including of the diesel desulfurization unit (DHDS). Meanwhile the Front End Engineering Design (FEED) for the Continuous Catalyst Regeneration (CCR) complex had already been completed.

** Pakistan Refinery Limited plans to complete its upgrade in five years, phasing out fuel oil and moving to Euro 5 grade diesel and gasoline to meet international standards and government requirements for a cleaner environment, said Zahid Mir, managing director and CEO of Pakistan Refinery. Pakistan Refinery would be the only refinery in the country to expand its capacity, doubling to 100,000 b/d while at the same time converting to a deep conversion refinery from the existing hydro skimming, Mir said. Following the completion of upgrades and expansion, the production of furnace oil in Pakistan will be significantly reduced from the existing 30% of refining output and will substantially increase the production of diesel and motor gasoline, he said.

Existing entries

** India's HPCL expects higher refining margins from Vizag refinery on the east coast in 2023-24 after the completion of a residual bottom upgrade. Vizag refinery's modernization project, involving capacity expansion, will be complete by December 2022. The capacity expansion project has been planned for completion in March 2022 while the residual bottom upgrade has been set to be complete by December 2022. The capacity expansion project has been delayed by three years, mainly on account of the fallout of the coronavirus pandemic in Asia third-largest economy. The expansion aims at raising the existing capacity of 8.3 million mt to 15 million mt. The modernization project involves the installation of primary processing units such as a CDU, replacing one of the three existing CDUs, a hydrocracker, and a naphtha isomerization unit. The initial deadline for the completion of the project along with a bottom-upgrade program was March 2020.

** India's Indian Oil Corp, will invest around $1.2 billion for a new crude pipeline system to connect Mundra port on the west coast with its Panipat refinery in mainland northern India. The proposed new pipeline system will have a nameplate capacity of 17.5 million mt/year. "The project is expected to be completed within 36 months and would be synchronised with the commissioning of Panipat refinery expansion project," IOC said in a regulatory filing in December. The project will meet enhanced crude oil demand arising from the capacity expansion of the refinery from 15 million mt/year to 25 million mt/year by 2025. The expansion project will be part of a petrochemicals integration plan for Panipat refinery. The expansion program includes an Indmax unit for deriving maximum value from the petrochemical molecule, a polypropylene unit, and a lube complex for producing lube oil base stock.

** India's Numaligarh has finalized more details of the new diesel hydrotreating unit it will be installing as part of its multi-year expansion. Toyo Engineering Corp. said Dec. 9 that its Toyo Engineering India Pte Ltd subsidiary had been awarded a contract by NRL for the engineering, procurement, construction and commissioning of 3.55 million mt/year diesel hydrotreating unit. The finalization of the details came on the back of the refiner saying in May it will use Honeywell's UOP technology to produce clean-burning diesel fuel in compliance with India's Euro 6 emissions standards and increase crude oil conversion. NRL is undertaking a project to triple its capacity to 9 million mt/year. Numaligarh Refinery Ltd. has also Axens to provide technical support and licensed technology for its planned expansion. Axens will provide technical support and license a naphtha hydrotreating unit, continuous catalytic reforming unit, isomerization, and fluid catalytic cracker. The company was aiming to complete the expansion project by 2025.

** SK Innovation and Energy has selected Honeywell UOP for a feasibility study to retrofit the hydrogen plant at the Ulsan refinery with carbon capture. SK will "explore capturing and sequestering 400,000 tons of carbon dioxide" from the existing hydrogen production assets. From 2026, the CO2 will be reinjected in depleted natural gas reservoirs, Honeywell said. "With the global demand for hydrogen expected to grow significantly within the next decade, hydrogen producers need a low-cost carbon capture system to help them meet their sustainability goals," said Ben Owens, vice president and general manager, Honeywell Sustainable Technology Solutions.

** Indian Oil Corp. has received environmental clearance for a capacity upgrade project at its Mathura refinery. The capacity expansion project includes residue upgrade and distillate yield improvement programs. The upgraded crude processing capacity will be 11 million mt/year.

** India's Nayara Energy, owned by Russian oil group Rosneft, will complete the first phase of its petrochemicals expansion project including setting up a 450,000 mt/year polypropylene plant in 2023 at its 20 million mt/year refinery complex at Vadinar in Gujarat. Nayara, as part of its broader plan for petrochemicals vertical, will set up a new propylene recovery unit along with upgrading the existing fluid catalytic cracking and LPG treatment units, besides setting up the PP plant.

** Reliance Industries Ltd. has no investment commitment for any refinery capacity expansion plan at its Jamnagar integrated complex, company officials have said. Reliance has two refineries at the world's biggest refinery complex in Gujarat on India's west coast with a combined capacity of 68.2 million mt. Reliance has received environmental clearance for a capacity expansion proposal at its export-focused refinery from 35.2 million mt to 41 million mt. Reliance also applied for regulatory clearance for a capacity expansion proposal at its domestically focused refinery from a capacity of 33 million mt/year to 40.5 million mt. However, it aborted the proposal after marketing conditions changed.

** State-run Indian Oil Corp. has awarded an engineering, procurement, construction, and commissioning (EPCC) contract to Paris-based Technip for its expansion project at the Barauni refinery in the eastern state of Bihar. The contract involves the installation of a 1 million mt/year "once-through" hydrocracker unit (OHCU), a fuel gas treatment unit (FGTU) and associated facilities. The expansion project will increase its capacity by 50% to 180,000 b/d and add petrochemicals such as polypropylene to the product portfolio. The initial plan for the completion of the capacity project was scheduled for 2021. But the second wave of the coronavirus pandemic may result in this being rescheduled.

** IOC-owned Bongaigaon refinery has plans to raise its annual capacity to 4.5 million mt.

** IOC's Haldia refinery will launch a second catalytic dew axing unit (CIDWU) with 270,000 mt/year capacity in 2023. The unit will produce advanced Group III Lubes Oil Base Stock (LOBS). The unit is expected to be commissioned in January 2023.

** IOC-owned Gujarat refinery's capacity expansion project is set to be over by Sept. 30, 2024, a delay of one-and-a-half years from the previous deadline. The delay is primarily a result of the coronavirus pandemic. The initial deadline was contemplated for 2020. The existing smaller capacity atmospheric unit and vacuum units will be replaced by a large atmospheric vacuum unit (AVU). The project also involves a revamp of the existing hydrogen generation unit, a new n-butanol processing unit and a revamp of the linear alkylbenzenes (LAB) unit. IOC plans to raise the capacity of the Gujarat refinery to 360,000 b/d by March 2023 from the current 275,000 b/d.

** IOC-owned Paradip refinery will install the first stage of a Grassroot Needle Coker Unit by using its own in-house technology. The proposed unit will have a Calcined Needle Coke, or CNC, production capacity of 56 kilotons/year. The company does not plan any expansion for its Paradip refinery, whose overall capacity is 15 million mt/year.

** French company Axens has been selected to provide technological support to Chennai Petroleum's 9 million mt/year Cauvery Basin Refinery project at Nagapattinam in Tamil Nadu. IOC approved a proposal for a grassroots refinery project of its subsidiary Chennai Petroleum Corp. Ltd., or CPCL, at Cauvery basin, known as the Cauvery Basin Refinery, or CBR. CPCL initially set up a refinery at the Cauvery basin in south India with a capacity of 500,000 mt/year in 1993, and later expanded the capacity to 1 million mt/year in 2002. Now, CPCL is expanding the capacity of CBR and as part of that, Axens will provide technologies for a Naphtha Hydrotreating Unit, Reforming unit (Octanizing), C5-C6 isomerization unit, and VGO (Vacuum Gasoil) Hydrotreater incorporating ZPJE spiraled tube heat exchangers technology.

** Pakistan's National Refinery is considering installing a continuous catalytic reformer to produce Euro 5 motor gasoline while reducing production of naphtha to zero. The project has been estimated to take at least four or five years to complete. It is continuing to study the possibility of a hydrocracker/bottom-of-the-barrel upgrade, aimed to upgrade fuel oil -- commonly known in the country as furnace oil -- to value-added products. For the highly capital-intensive project of converting fuel oil into diesel and naphtha a joint project among Pakistan's five refineries is under initial consideration. A joint venture is being considered to carry out the project as it is not feasible for low-capacity refineries on a standalone basis.

** Pakistan's largest refiner, Cnergyico (formerly Byco), plans to convert the bulk of its fuel oil output capacity into producing gasoline and diesel meeting international Euro 5 standards, Chairman Mohammad Wasi Khan said in September 2021. Byco Petroleum typically produces 30%-40% fuel oil from each barrel of crude oil they refine. The product is mainly used by utilities for power generation. But furnace oil demand weakened after utilities started using liquefied natural gas, which is a cleaner alternative, said Wasi Khan. "Byco started development work to modernize its refinery by launching the Upgrade-I project at the start of this year which would be completed by 2025," the chairman said, with civil work on the site and the arrival of equipment and machinery underway and the company getting ready to install additional units. "Byco seeks to install altogether 14 plants, including fluid catalytic cracking and diesel hydro desulfurization units," Wasi Khan said. By the time it finishes, the company will have a total of 19 plants at its oil refining complex. This equipment will help convert the bulk of the Byco's furnace oil output into Euro 5 compliant gasoline and diesel and produce other high-quality fuels like jet fuel and kerosene. Meanwhile, Axens has been selected by Byco to support its upgrading projects Phases I, II and III. The scope of Axens' work includes "the supply of process design package for integration of three existing units into FCC gasoline hydrotreating configuration" as well as catalysts and adsorbents for the sulfur recovery unit and distillate hydrotreaters 2 and 3, and distillate hydrotreater 3 reactor internals. The start-up date of the complete Phases I, II and III is expected in Q2, 2024. Currently Pakistan's Byco refinery is rebranding under the name of Cnergyico Pk Ltd.

** Indonesia's Pertamina started upgrade work at its Balongan refinery as part of Indonesia's Refinery Development Master Plan. The first phase has started with upgrade work at the facility's crude distillation unit, aimed at increasing the flexibility of the refinery's crude slate and raising the plant's refining capacity. The project is expected to be completed in 2026. Pertamina will build the project in three phases. The first phase is to increase refining capacity from to 150,000 b/d by 2022 from 125,000 b/d currently. The second and third phase will increase the product yield from the refinery, including from the new petrochemical plant. The RDMP project is also being carried out at other refineries across Indonesia, such as Pertamina's Cilacap, Balikpapan, Dumai and Plaju refineries.

** Pertamina has completed more than 42% of its physical upgrade plans at its 260,000 b/d Balikpapan refinery, with several refinery units having been delivered and milestones reached. Three boiler units and an alkylation reactor were delivered in the first quarter, while several steam generator units were delivered in Q2, one industry source said. Local media reported that the latest addition to the refinery project was a propylene splitter unit -- a column which separates propylene from propane -- which was installed on Oct. 25. In the first phase of the refinery upgrade works, scheduled to be completed in 2024, the facility would see its total refining capacity increase from 260,000 b/d to 360,000 b/d. The refinery would also be able to produce higher quality gasoline that meets Euro 5 standards. In the second phase of the refinery upgrade works, the refinery would have increased flexibility in its crude oil supply, enabling the refinery to process sour crude with sulfur content of as much as 2%, the company had said on its website previously. The second phase of upgrades at the Balikpapan refinery is scheduled for completion in 2026. Separately, Pertamina will go ahead and revamp its Cilacap refinery without Saudi Aramco, raising capacity from 348,000 b/d to 370,000 b/d. In May 2020, Pertamina and South Korean Consortium DH Global Holdings Co signed a memorandum of understanding for the upgrade of the Dumai refinery complex, with plans to increase the refinery's operating capacity.

** Pertamina will start producing biodiesel at its Cilacap Refinery Unit IV in December. It will begin to produce around 3,000 b/d of D-100 bbm, with an increased production of an additional 6,000 b/d of combined D-100 bbm and B30 biodiesel blend set to come on stream from December 2022. Units are also being built at Plaju refinery for an additional 20,000 b/d in biofuel production. Pertamina will use Honeywell UOP technologies to produce advanced biofuels at Plaju and Cilacap.

** Indonesia's TPPI has laid out the next steps of its upgrading works at its Tuban refinery, setting 2024 as the target for the completion of its new Olefin Project. In addition, the Olefin project, TPPI will also continue its Aromatic Revamping project. The Olefin Project is slated for completion by 2024 while the Aromatic Revamping project will complete by 2022.

** Petron Malaysia has been considering a plan to more than double capacity at its 88,000 b/d Port Dickson refinery in Malaysia to 178,000 b/d.

** Hengyi Industries has selected a flexicoking technology for a second time as part of its expansion project in Pulau Muara Besar. The Brunei refinery already started up a 1.1 million mt/year flexicoking unit at the end of 2019. Hengyi Industries has selected the technology for its new Phase II expansion project. The flexicoking unit, due for start-up in June 2024, will upgrade 2.1 million mt/year of vacuum residue, FCC slurry oil and steam cracker pyoil into valuable distillates and flexigas. Hengyi Industries will use "advanced reforming and aromatics technologies" from Honeywell UOP for the integrated petrochemical complex in Puala Muara Besar, Brunei. The Brunei complex will include aromatics block consisting of CCR Platformer to convert naphtha into aromatics, as well as aromatics complex to recover high-purity paraxylene from mixed xylenes. The latter will produce up to 2.3 million mt/year of paraxylene. The complex will also include naphtha hydrotreater and Olefin Removal Process unit amid others. In addition, UOP is providing VGO Unicracking unit and Diesel Unicracking unit targeting maximum naphtha production. The first phase of the Pulau Muara Besar refinery envisages crude processing capacity of 8 million mt/year while in the second phase, the refinery will add 14 million mt/year of crude processing capacity, bringing overall capacity to 22 million mt/year.

** A $4 billion clean fuel project is being undertaken at Thailand's Sriracha refinery. The upgrade is slated to be completed in 2023 and will increase the refinery's capacity from 275,000 b/d to 400,000 b/d, boosting the yield of cleaner products.

** Two separate consortiums have submitted bids for the engineering, procurement, and construction contract to build, upgrade and expand project of Dung Quat refinery in central Vietnam. The upgrade will raise the capacity of Dung Quat to 8.5 million mt/year from current 6.5 million mt/year.

** Saudi Aramco and S-Oil signed a memorandum of understanding to collaborate on a $6 billion steam cracker and olefin downstream project at Onsan due for completion in 2024.

** ExxonMobil announced a final investment decision at its Singapore complex.

The project includes an expansion aimed at converting "fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates." Startup is set for 2023.

** Petron plans to expand and upgrade its Bataan refinery in Limay. There was no timeline for when the expansion will take place. The refinery's capacity will be increased by 100,000 b/d of condensates and light crude oils, from current capacity of 180,000 b/d.

Launches

Existing entries

** Malaysia's Pengerang Refining and Petrochemical integrated complex, also known as PRefChem, is expected to resume operations in Q2, possibly in May, according to market sources. Petronas has previously said it aimed for restart in 2021. The refinery, also known as RAPID refinery, had delayed its restart several times, following a fire that broke out at the diesel unit in March 2020. The plant, part of the Pengerang Integrated Petroleum Complex at Johor in the south of the Malay peninsula, was launched in late 2019.

** Vitol's refinery in southern Malaysia's Johor state is not expected to be online before the end of Q2 2022, the company said Jan. 21. The refinery, whose construction started in 2019, was likely to be operational in Q4 2021, but there have been some minor delays.

** Mongolia is aiming to complete the construction of its maiden refinery project in 2025, according to a statement on the Parliament's website. Engineering work at the refinery in Dornogovi (Dornogobi) in the southeast of the country has been completed despite the disruptions caused by COVID-19. When the feasibility study was approved in Dec. 2018, completion was expected for 2024, the statement said. It will have 1.5 million mt/year annual capacity and produce 1.33 million mt of oil production. 66% of the output will be diesel, with the rest 95 RON, LPG and jet fuel. The plant will cover 80% of the domestic demand for diesel and gasoline. Construction started in 2018.

** Flow Petroleum Ltd. (FPPL), a Pakistan-based oil marketing company, has signed an agreement with Al Ghurair Investments, a large investment group in UAE for the 100% ownership of a 120,000 b/day of refinery named Trans Asia Refinery. It will be set up on 200 acres of land leased from Port Qasim Authority, Karachi, Pakistan.

** India's proposed new 1.2 million b/d Ratnagiri refinery on the west coast is still facing delay due to "local issues". Construction at the site was expected to start in 2020 but there have been issues relating to land acquisition which had stalled the project. The location of the project has already moved once, from Ratnagiri district to Raigad district. The refinery is now expected to be commissioned in 2025, according to industry sources.

** Pak-Arab Oil Refinery Limited will start physical works on its coastal refinery in 2021, after almost 13 years of delays to the project. Following the start of the works, the refinery is expected to come online in 2025-26.

** Indonesia's Pertamina decided to postpone the construction of a proposed 300,000 b/d Bontang refinery in East Kalimantan.

** A Rosneft and Pertamina joint venture has signed a contract with Spanish Tecnicas Reunidas to design the construction of an oil refinery and petrochemical complex in Tuban, Indonesia. Primary processing design capacity is planned at up to 15 million mt/y, planned capacity at the petrochemical complex includes more than 1 million mt/year for ethylene and 1.3 million mt/year for aromatic hydrocarbons.

** Sri Lanka has approved a $20 billion refinery project at the port town of Hambantota. The announcement follows the inauguration of a smaller refinery complex at the port, which has backing from the Oman Oil Company.

** Haldia Petrochemicals Ltd.'s proposal to invest $4.05 billion in an integrated refinery and petrochemicals facility in Balasore, India, has been granted approval by the Odisha government.

** Pakistan and Saudi Arabia are in talks to develop a 200,000-300,000 b/d refinery in Balochistan's Gwadar district for $10 billion.

** A new HPCL project in Barmer, India, is due for completion by March 2023.

** India's refinery project in Maharashtra, being developed by state-owned IOC, HPCL and BPCL, will start up around 2022-23.