APPEC: Aster shifts 70% of crude slate beyond Persian Gulf amid Hormuz disruptions

Singapore-based refiner Aster has shifted its crude slate from about 70% Persian Gulf supply to about 70% from other regions following disruption to traffic through the Strait of Hormuz, its senior general manager said Sept. 9 at APPEC 2026 hosted by S&P Global Energy in Singapore.

"We were required to quickly pivot," Senior General Manager Han Lih Kwong said, noting that around 70% of the refiner's crude slate now comes from elsewhere, including West Africa, Latin America and Canada.

Platts, part of S&P Global Energy, assessed Cold Lake Blend at Hardisty at a discount of $46.98/b to Dubai and a discount of $11.87/b to Basrah Medium on Sept. 9.

The switch illustrates the operational challenges Asian refiners, traditionally reliant on Middle Eastern grades, faced when replacing Persian Gulf supply with crude from other sources.

Han said the refinery's ability to make the switch was not developed solely in response to the latest disruption. "That capability was built through decades of investments, both in software and in hardware."

Aster operates its refinery as a merchant trading facility, making feedstock flexibility important to its ability to respond to price movements and supply disruptions, Han said.

The physical infrastructure surrounding the refinery was equally important, because the refinery may need to receive cargoes ranging from 2 million-barrel shipments on very large crude carriers to smaller Aframax parcels while maintaining sufficient tank capacity to segregate and blend different grades. "All this infrastructure takes time and investment for us to get there," he said.

Aster on Sept. 1 announced the launch of Aster Port and Terminals, consolidating its marine, terminal and storage infrastructure in Singapore into a commercial platform serving the company and third-party customers.

The platform comprises 13 marine wharves, up to 4.3 million cubic meters of tank storage and a single buoy mooring capable of receiving very large crude carriers carrying up to 2 million barrels. Aster also awarded contracts to rejuvenate and increase available crude storage capacity at Pulau Bukom by more than 1.3 million barrels.

The previously announced project provides additional flexibility to hold and blend a wider range of crude streams. Han said refinery resilience required flexibility in both processing units and supporting infrastructure, rather than a procurement response devised only after supplies were disrupted.