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Refinery news roundup: India's oil demand still away from pre-pandemic levels

Судовое топливо

Platts Bunkerwire

Refinery news roundup: India's oil demand still away from pre-pandemic levels

London — Indian oil demand is still a while away from reaching pre-pandemic levels, Minister of Petroleum & Natural Gas and Minister of Steel Dharmendra Pradhan said Oct. 13, admitting that some energy projects are also facing delays.

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Speaking at the Energy Intelligence Forum, Pradhan acknowledged that managing the impact of the coronavirus on both India's energy demand and investment has been a huge challenge but he said the country was moving in the "right direction."

"Energy demand will be normal within the next few quarters. Things are on the right track," he said.

Indian oil demand fell dramatically from April to August as a result of the coronavirus-induced lockdowns, but as lockdowns eased, demand remained very weak due to a heavy monsoon and surging coronavirus infections.

The government's plans to sell stakes in its state-run downstream major Bharat Petroleum Corp. Ltd., or BPCL, have hit a road bump.

Pradhan said the government was "treading cautiously" on the sale of BPCL but said the divestment was still on the cards.

India maintains lofty ambitions to boost its total refining capacity by 40% in the next decade as oil demand is set to grow sharply.

Pradhan said the ministry wants to add a minimum of 100 million mt by 2030 from its current refining capacity of 250 million mt. Central to that will be the 1.2 million b/d Ratnagiri refinery project on the country's Konkan coast, which is being built with a joint venture consisting of Saudi Aramco, ADNOC and Indian state-owned refiners IOC, HPCL and BPCL.

India's gasoil consumption rose 13.2% month on month to 5.49 million mt in September, latest provisional data from the Petroleum Planning and Analysis Cell showed. Industry sources said that the easing coronavirus-related restrictions have helped to spur demand for the middle distillate, which led gasoil consumption to bounce back to above the 5 million-mt level, after slumping to a four-month low in the preceding month.

** India's Bharat Petroleum Corp Ltd. the second-largest state-run refiner, has increased the combined run rate at its refineries in Kochi and Mumbai to more than 80% as the country's economy unlocks, company officials said Sept. 28.

** Indian Oil Corp. is running at a 70%-75% rate at its nine refineries because retail fuel demand has yet to pick up, company officials said Sept. 21.

** India's Mangalore Refinery and Petrochemicals Ltd. will continue to operate its refinery at around 60%-70% of capacity in the near term, as poor middle distillate margins put earlier plans to ramp up rates on hold, industry sources with close knowledge of the matter said. The refiner had planned to continue raising run rates to around 75%-80% in October, but have pushed back plans to later in the fourth-quarter, choosing instead to wait for oil products demand to show improvement across the barrel.

** South Korea's SK Energy's Ulsan plans to raise crude throughput gradually in the third and fourth quarters as refining margins are likely to improve, an official said. "We expect the company's crude run rate in the third quarter to be around 80-85%," the official said.

** SK Energy's refining affiliate SK Incheon Petroleum, which runs two CDUs with a combined 275,000 b/d of capacity and a 100,000 b/d condensate splitter at Incheon on the west coast, will not reduce its run rate in the third quarter because it is already low, an official said. SK Incheon's crude run rate averaged 76% in the second quarter, down from 84% in Q2 2019 and 80% in the first quarter.

** Pilipinas Shell Petroleum Corp. plans to shut down its Tabangao refinery and transform the facility into an import terminal, the company said in a statement. The refinery has been shut since May 24, having been idled due to weak demand for domestic products.

** The last remaining domestic refinery in the Philippines, Petron's Bataan plant, may close should discussions regarding customs tax with the government fall through, the company said. That followed a local media report citing the company's President and CEO Ramon Ang saying that "for Petron Refinery, I will close that down if talks with the government will not succeed".

** New Zealand's Refining NZ has proposed lowering throughput at the country's sole refinery by 33% in 2021 in an attempt to keep the facility running at a "cash neutral" position amid ongoing discussions regarding its transition to an import terminal. The company in a statement said it was proposing to simplify operations by lowering the refinery's throughput to around 90,000 b/d or two-thirds of its capacity and ceasing bitumen production. Marsden Point refinery typically produces around 100,000-120,000 mt/year of bitumen and meets most of the country's bitumen demand, industry sources said. Against the backdrop of the simplification proposal, discussions are also continuing on plans to convert the Marsden Point refinery into an import terminal.

** Australia's second-largest refiner Viva Energy has again signaled the possible closure of its Geelong refinery, faced with thin margins and prolonged lackluster demand for refined oil products amid the extension of movement restrictions in the state of Victoria to contain a second wave of coronavirus infections. "The company is assessing other options to address operating losses, including the possibility of moving to a full shutdown of the facility," Viva Energy said in a statement on its website.

** Vietnam's Nghi Son refinery will keep its operating run rate above 100% of capacity in the near term, unchanged from August, even as a buildup of inventories put domestic buyers under pressure, industry sources with close knowledge of the matter said.

** Taiwan's Formosa Petrochemical is currently running its 540,000 b/d refinery in Mailiao at 160,000 b/d, or around 30% of capacity, and plans to raise operations to 220,000-230,000 b/d on average this month, a company source said. The refiner plans to further raise operations to 330,000 b/d, or around 60% of capacity on average next month, the source said, after it restarts the No. 1 residue desulfurisation unit, and residue fluid catalytic cracker on Nov. 10 from maintenance and repair works, which could see the company offer more gasoline for November and December, Platts reported earlier.

Vietnam's gasoil imports declined for the second consecutive month to hit a six-month low in September as a resurgence of COVID-19 infections in the country muted demand, latest preliminary data released by Vietnam Customs Oct. 13 showed. Gasoil inflows slumped 23.5% on the month to 271,726 mt in September, marking its lowest import volumes since the peak of the coronavirus pandemic in March when imports were registered at 193,311 mt.

NEW AND ONGOING MAINTENANCE

Refinery
Capacity b/d
Country
Owner
Unit
Duration
Ulsan
840,000
South Korea
SK
Part
Q4
Geelong
120,000
Australia
Viva
Part
NA
Marsden Point
135,000
New Zealand
Refining NZ
Full
Mar'2021
Sapugaskanda
50,000
Sri Lanka
Ceylon Petr
Full
2021
Tabangao
110,000
PSPC
Philippines
Full
Closure
Mailiao
540,000
Taiwan
Formosa
Fire
Jul
Rayong
215,000
Thailand
IRPC
Fire
Sept
Vadinar
400,000
India
Nayara
Part
Oct
Marsden Point
135,000
New Zealand
NZ Refining
Part
2021

UPGRADES

Ulsan
840,000
South Korea
SK
Upgrade
Delayed
Vizag
166,000
India
HPCL
Expansion
2020
Mathura
160,000
India
IOC
Upgrade
N/A
Paradip
300,000
India
IOC
Upgrade
N/A
Panipat
500,000
India
IOC
Expansion
2021
Gujarat
275,000
India
IOC
Expansion
2020
Vadinar
400,000
India
Nayara
Expansion
NA
Jamnagar
1,360,000
India
Reliance
Expansion
NA
Numaligarh
60,000
India
BPCL
Expansion
NA
Port Dickson
88,000
Malaysia
Petron
Expansion
2020
Bataan
180,000
Malaysia
Petron
Expansion
2020
Bangkok
120,000
Thailand
Bangchak
Expansion
2020
Onsan
669,000
South Korea
S-Oil
Upgrade
2024
Barauni
120,000
India
IOC
Expansion
2021
Balikpapan
260,000
Indonesia
Pertamina
Expansion
2024
Balongan
125,000
Indonesia
Pertamina
Upgrade
2026
Byco
155,000
Pakistan
Byco Group
Upgrade
NA
Cilacap
348,000
Indonesia
Pertamina
Upgrade
2023
Plaju
133,700
Indonesia
Pertamina
Upgrade
Pakistan Ref
50,000
Pakistan
Pakistan Ref
Upgrade
NA
Hengyi
160,000
Brunei
Hengyi Ind
Expansion
2024
Dung Quat
130,000
Vietnam
Binh Son
Expansion
NA

LAUNCHES

Barmer
180,000
India
HPCL
Launch
2023
Maharashtra
1,200,000
India
Joint
Launch
2022-23
Tuban
300,000
Indonesia
Joint
Launch
2024
Dornogovi
30,000
Mongolia
Government
Launch
2026
Nagapattinam
180,000
India
Chennai
Launch
NA
Mumbai
1,200,000
India
Ratnagiri
Launch
2025
Gwadar
300,000
Pakistan
Joint
Launch
NA
Balasore
NA
India
Haldia
Launch
NA
Hambantota
NA
Sri Lanka
Joint
Launch
NA
Hambantota
NA
Sri Lanka
Sugih
Launch
NA
Tanjung Bin
30,000
Malaysia
Vitol
Launch
NA
Nagapattinam
180,000
India
Chennai
Launch
NA
RAPID
300,000
Malaysia
Joint
Launch
Started
Bontang
300,000
Indonesia
Pertamina
Launch
NA
PARCO
250,000
Pakistan
PARCO
Launch
2025
Nagapattinam
180,000
India
Chennai
Launch
NA
Ratnagiri
1,200,000
India
Joint
Launch
2025

New and ongoing maintenance

New and revised entries

Asia-Pacific

** New Zealand's Marsden Point will undergo a scheduled turnaround at its No.1 crude distillation unit and continuous catalytic reforming platformer in 2021 that had been originally planned for 2020, the duration of which could not be confirmed.

** Taiwan's Formosa Petrochemical will restart its No. 1 residue desulfurisation unit and a residual fluid catalytic cracking unit on Nov. 10 from maintenance and repair works, a company source said. The No. 1 RDS was shut for a 40-day turnaround in early October, while the No. 2 RDS has been shut since it was hit by a fire on July 15. The fire-hit RDS is expected to restart in April 2021 at the earliest, Platts reported previously. Formosa had shut one of its RFCCs for repair works on Aug. 10 following the fire at the No. 2 RDS, Platts reported earlier. The RFCC was located near the fire-hit RDS unit, with the RDS unit typically supplying low sulfur feedstock to the RFCC. With the No. 1 RDS restarting on Nov. 10, the gasoline-producing RFCC, which has completed repair works, will also restart. Formosa has two RFCC units each of 84,000 b/d capacity. After the restart on Nov. 10, both RFCCs will operate at around 75% of capacity. Currently, the other RFCC is operating at 80% of capacity, up from 75% previously. The refinery is currently running its refinery in Mailiao at 160,000 b/d, or around 30% of capacity, and plans to raise operations to 220,000-230,000 b/d on average this month, a company source said. The refiner plans to further raise operations to 330,000 b/d, or around 60% of capacity on average next month, the source said, after it restarts the No. 1 residue desulfurisation unit, and residue fluid catalytic cracker on Nov. 10 from maintenance and repair works.

Existing entries

India

** Indian private refiner Nayara Energy will shut one of its two crude distillation units at its Vadinar refinery in October, for around three weeks of scheduled maintenance, industry sources with knowledge of the matter told S&P Global Platts. The 360,000 b/d unit will see refining capacity at the export-focused plant drop by nearly "85%-90%", one source said, adding that the company's second 40,000 b/d CDU will continue to operate without interruption.

Asia-Pacific

** Australia's second-largest refiner Viva Energy has again signaled the possible closure of its Geelong refinery amid thin margins and prolonged lackluster demand for refined oil products amid the extension of movement restrictions in the state of Victoria to contain a second wave of coronavirus infections. "The company is assessing other options to address operating losses, including the possibility of moving to a full shutdown of the facility," Viva Energy said in a statement on its website.

** Thai oil and petrochemical company IRPC Public Co. Ltd has taken several refining units offline after a fire at its Rayong facility in early September, industry sources with knowledge of the matter said. The units shut include a atmospheric residue desulfurization unit and residual deep catalytic cracker, sources said, adding that it was not yet clear when the units would come back online. The refinery had also taken a 25,000 b/d atmospheric residue desulfurization unit offline for catalyst changing in Q1, the company said in a Q1 report in May.

** Pilipinas Shell Petroleum Corp. will be shutting down its Tabangao refinery, transforming the facility into an import terminal, the company said in a statement released on its website Aug. 13. The refinery has been shut since May 24, having been idled due to weak domestic product demand.

** South Korea's SK Energy plans to shut its 170,000 b/d No. 3 crude distillation at Ulsan for several weeks' maintenance in the fourth quarter, along with a 80,000 b/d No. 2 residue hydro-desulfurization unit, a company official said. SK Energy has five CDUs with a combined capacity of 840,000 b/d at its Ulsan complex.

** Sri Lankan Ceylon Petroleum Corp.'s Sapugaskanda refinery in 2021 is slated to undergo "a predicted full shutdown [that] is scheduled every two years generally," the company said in the statement. The exact period and duration of the turnaround has yet to be announced.

Upgrades

New and revised entries

** 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, Dung Quat's operator Binh Son Refining and Petrochemical said in a statement Oct. 8. They is a consortium of Hyundai Engineering & Construction Co. Ltd. and Hyundai Engineering Co., Ltd.; and consortium of Technip Italy, Technip Geoproduction (M) Sdn Bhd, Technip France, PetroVietnam Technical Services Corp. and Vietnam's Lilama Corp. BSR said the upgrade and expansion project on 108 hectares will cost $1.8 billion. It will raise the capacity of Dung Quat to 8.5 million mt/year from current 6.5 million mt/year. The project will enable the refinery to diversify its crude inputs and meet Euro-V standards for its fuels. The EPC contract is expected to be implemented from August 2021, BSR said, without mentioning when the winner will be announced.

Existing entries

** Indonesia's state-owned oil and gas company Pertamina will use Honeywell UOP technologies to produce advanced biofuels at its Plaju and Cilacap refineries. Honeywell said. "Pertamina chose to work with UOP to build a greenfield biorefinery at Plaju and revamp its Cilacap refinery," Honeywell said. The biorefinery in Plaju will produce 20,000 b/d of vegetable oils and fat to produce renewable jet fuel, renewable diesel fuel and green LPG at the Plaju refinery. The Cilacap refinery will be revamped to process 6,000 b/d of vegetable oils and fats to produce advanced biofuels. 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, a company spokesperson said. The company had signed a heads of agreement on the revamp project in November 2015 with the Saudi oil major, but Aramco did not accept the figure that Pertamina had given on asset valuation, Platts has reported. Pertamina now plans to find other partners to work on the project, Fajriyah Usman said. Originally the project was expected to be completed in 2022 but now it may be delayed to 2023, she added. After the project is completed, Pertamina will be able to produce an additional 80,000 b/d of gasoline, 60,000 b/d of diesel and 40,000 b/d of jet fuel from Cilacap. The project includes increasing the crude distillation unit's capacity; raising the residual fluid catalytic cracking unit's capacity from 62,000 b/d to 81,000 b/d and adding a new 43,000 b/d hydro cracking unit.

** The Pakistan National Refinery has raised its capacity of Lube-1, the company said in a filing to the Pakistan Stock Exchange. The facility said in its statement that a two-stage distillation unit revamp of its Lube-1 Refinery has been successfully commissioned. This would enhance the installed crude oil processing capacity of the unit from 12,050 barrel per stream day (bpsd) to 17,000 bpsd, the statement said. Moreover, vacuum fractionation capacity has been raised from 5,200 bpsd to 6,600 bpsd, according to the statement. Separately, Pakistan Refinery has issued shares in order to upgrade and expand the plant into a deep conversion refinery, according to market sources and company documents. The proceeds will be used to revamp units and increase the gasoline and diesel yield. Following the sale of shares, Pakistan State Oil, the state-run biggest retail supplier of motor gasoline and diesel, and the refinery's biggest shareholder, increased its share in the refinery to 63.56% from 60%, Pakistan State Oil said in a filing to Pakistan Stock Exchange on July 29. It bought 40% of the right shares that Pakistan Refinery issued. Banks, pension funds, the general public and Hascol Ltd. own the rest of the shares.

** State-run Indian Oil Corp-owned Gujarat refinery's capacity expansion project is set to be over by Sept.30 2024, company officials said Sept.30, a delay of one and a half years from the previous deadline. The delay is primarily due to the rescheduling of the project execution timelines for the pending projects as a result of the coronavirus pandemic. The initial deadline for the capacity expansion project was contemplated for 2020. The initial deadline was deferred due to the making of the feasibility report. The expansion plan will help the refinery on the west coast to process cheaper heavy crude grades and improve profitability. The refinery with its expanded capacities would process crude grades from Kuwait, Basrah light (Iraq), Mangla from Rajasthan, and local grades from the oil fields of north and south of Gujarat. Under the expansion project, the existing smaller capacity atmospheric unit and vacuum units will be replaced by a large atmospheric vacuum unit (AVU) for raising the operational efficiency of the refinery. The project also involves a revamp of the existing hydrogen generation unit for the production of syngas and hydrogen, a new n-butanol processing unit and a revamp of the linear alkylbenzenes (LAB) unit.

** Indian Oil Corp. owned Paradip refinery will install the first stage of a Grassroot Needle Coker Unit by using its own in-house technology, company officials said Sept. 1. The proposed unit will have a Calcined Needle Coke, or CNC, production capacity of 56 kilotons/year. Currently, the entire Needle Coke requirement of the country (80-100 kilotons/year) is met via imports. The company does not plan any expansion for its Paradip refinery, whose overall capacity is 15 million mt/yr.

** Hengyi Industries plans to more than double the capacity at its integrated refinery and aromatics complex in Brunei to around 455,000 b/d, from its current 160,000 b/d, over three years, the company said in a statement. The expansion will raise the refinery's gasoline output by 2.55 million mt/year, gasoil by 1.94 million mt/year, jet fuel by 1.84 million mt/year and LPG by 190,000 mt/year, according to the statement released the week ended Sept. 18. The refinery currently has a combined gasoline, diesel and jet fuel output of around 6 million mt/year. There are also plans to increase olefin/polyolefin production capacity.

** Indonesia's Pertamina is planning to build a petrochemical plant at its Balongan refinery in West Java and will cooperate in the project with Taiwan's CPC. The project is expected to be completed in 2026 and once it is on stream Indonesia will reduce imports of petrochemical products. 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. Under the plan, Pertamina and CPC will build a naphtha cracker that is expected to substitute imports. The naphtha cracker will produce at least 1 million mt/year of ethylene. Pertamina is also cooperating with Abu Dhabi National Oil Company (ADNOC) in the Balongan refinery project.

** SK Energy has delayed full operation at its newly built 40,000 b/d desulfurization unit due to "deterioration in market conditions" in the wake of the coronavirus pandemic. The refiner completed mechanical construction of the vacuum residue desulfurization, or VRDS, unit on January 31, three months ahead of original schedule, to supply IMO 2020 low sulfur marine fuels to the market. The company previously aimed to start commercial production by the end of March.

** HPCL's $3.2 billion project to expand Vizag's capacity to 300,000 b/d is in advance stage of completion, company officials said. Originally, the expansion project was scheduled for completion in July 2020. But officials did not provide any specific timeframe for the completion of the project. The project aims to install primary processing units such as a CDU, replacing one of the three existing CDUs, a hydrocracker, and a naphtha isomerization unit.

** Pakistan's Byco Petroleum Pakistan on its website said it plans to build an aromatics plant with a capacity of 27,300 b/d to produce benzene, mixed xylene, paraxylene, orthoxylene, C9 and raffinate.

** Hyundai Engineering has won a $2.17 billion deal to upgrade the Balikpapan refinery in Indonesia. Hyundai Engineering will "be responsible for the engineering, procurement and construction for the facility upgrade," which would take 53 months for completion and increase the refinery's capacity from 260,000 b/d to 360,000 b/d. Completion was expected in 2023. Separately, Indonesia's Pertamina and Mubadala signed a Refinery Investment Principle Agreement to evaluate any possibility to cooperate in processing sector, including to accelerate Pertamina's Balikpapan project that is expected to require about $5.5 billion of investment.

** IOC's refinery in the western state Gujarat will have the largest capacity among its portfolio of refineries by 2022-23, company officials said. 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 plans to expand the atmospheric and vacuum unit at its Barauni refinery to boost its overall capacity to 9 million mt/year by 2021.

** At Thailand's Bangchak Petroleum an expansion plan is under way to ramp up the 120,000 b/d refinery's production capacity to 140,000 b/d in 2020, through installation of a continuous catalyst regeneration unit. Under the expansion plan, the company will also debottleneck the hydrocracker, which could expand the refinery's production capacity by 10%.

** 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, which will produce ethylene and other basic chemicals from naphtha and off-gas.

** 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. The expansion will add capacity to increase cleaner fuels output with lower sulfur content by 48,000 b/d.

** Reliance Industries Ltd. has received clearance to raise the capacity of its export-oriented Jamnagar refinery on the west coast of India by 17% to 41 million mt (820,000 b/d). By 2030, RIL aims to raise its total refining capacity -- including its domestic-focused refinery -- at Jamnagar to 98.2 million mt/year. Reliance currently is 1.37 million b/d, of it 707,000 b/d for the export and 660,000 b/d domestic. The export one will increase capacity to 820,000 b/d. By 2030, it aims to raise its overall capacity to 1.96 million b/d.

** India's IOC plans to raise the capacity of its Panipat refinery to 25 million mt/year by 2021 to meet growing demand for oil products. The refinery's capacity is 15 million mt/year.

** India's cabinet has approved a project to expand the capacity of the Numaligarh refinery to 9 million mt/year from 3 million mt/year.

** Nayara Energy is seeking the renewal of environmental approval to double capacity at its Vadinar refinery as the previous approval had been given to Essar Oil. It had planned to double the refining capacity at Vadinar to 40 million mt/year.

** Petron plans to expand and upgrade its Bataan refinery in Limay, increasing its capacity by 55% to produce 75,000 b/d of refined products and 1 million mt/year of aromatics. 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.

** IOC has signed up energy technology and infrastructure solutions provider CB&I for a residue upgrading unit at its Mathura refinery in north India.

** The Philippines' Petron Corp. 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.

Launches

New and revised entries

** India's proposed new 1.2 million b/d Ratnagiri refinery on the west coast is still facing delay due to "local issues", the country's Minister of Petroleum & Natural Gas and Minister of Steel Dharmendra Pradhan said Oct. 13. Construction at the site was expected to start this year 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.

Existing entries

** Chennai Petroleum Corp. Ltd's proposed 9 million mt refinery at Cauvery Basin in South India has received clearance from an environment ministry panel, company officials said. The refinery project has been approved by CPCL's parent company Indian Oil Corp., India's No.1 state-owned refiner. IOC holds a 51.89% share in CPCL. The proposed project will be a state-of-the-art modern refinery cum petrochemical project, including a polypropylene unit. The refinery will have capacities to produce around 4 million mt/year diesel, 1.8 million mt/y gasoline, both Euro 6 grades and 0.6 million m/y of LPG, and 0.3 million mt/y jet fuel. The refinery will be designed to process 50% each of a mix of Basrah Light, Basrah Heavy grades and 100% with respect to Iranian Light. CPCL currently operates two refineries with a combined capacity of 11.5 million mt/year in Tamil Nadu.

** Pak-Arab Oil Refinery Limited will start physical works on its coastal refinery in H1 2021, after almost 13-years of consecutive delays to the project, industry sources with close knowledge of the matter said. Following the start of the works, the refinery is expected to come online in 2025-2026, and will increase the country's refining capacity by 250,000 b/d. PARCO also operates the 100,000 b/d Mid-Country Refinery in Mahmoodkot. The project for the coastal refinery was approved in 2007, but construction was subsequently delayed due to issues regarding funding.

** Infrastructure for Mongolia's first refinery in Dornogobi (Dornogovi) has been completed with construction of the groundwork for the refinery's site underway, according to local media report. At a government meeting, the importance of completing the project on time has been highlighted. It is operated by the state owned Mongolian Oil Refinery. Negotiations with the company for an EPC contract have been completed and preparations are underway for signing the contract. A working group will be set to accelerate the completion of the project. Mongolia's first refinery is expected to reach full capacity by 2026, S&P Global Platts has previously reported.

** Malaysia's Pengerang Refining and Petrochemical, also known as PRefChem or RAPID, plans to delay the restart its fire-hit refinery in the southern state of Johor from September to early 2021, following which, operations at the integrated petrochemical complex will resume, sources with direct knowledge of the matter told S&P Global Platts. This was due to "economic reasons," a source close to the matter said. The restart had earlier been scheduled for September, with full commercial operations targeted for late 2020, Platts reported earlier. The refinery was shut March 15 due to an explosion at a diesel hydrotreater unit that led to five fatalities, Platts reported at the time. The resulting feedstock disruption led to the shutdown of its naphtha-fed steam cracker and downstream petrochemical plants. This was the second major incident at the Pengerang Integrated Complex, which was started up in Q3 2019. In April 2019, there was an explosion and fire at the atmospheric residue desulfurization unit when the refinery was in the commissioning stage.

** Indonesia's Pertamina decided to postpone the construction of a proposed 300,000 b/d Bontang refinery in East Kalimantan, a senior official said. "Bontang is still on the list, but currently we are focusing on the existing ones," Pertamina's mega project refinery and petrochemical director Ignatius Tallulembang said, adding that upgrading the existing refineries is "our priority". Ignatius Tallulembang said that the construction has been going on "but our partner stopped. So we hold the project while we are assessing more detail on oil supply and demand. If everything is clear, we will discuss again with our stake holders." The proposed refinery is targeted to produce at least 60,000 b/d of gasoline and 124,000 b/d of diesel and the products will meet Euro IV specifications, with Pertamina prioritizing domestic marketing first.

** 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, Rosneft said.

Commissioning of the plant in East Java is expected within the next five years. Primary processing design capacity is planned at up to 15 million mt/year, 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.

** Iran remains open to investing in a planned expansion project by Chennai Petroleum Corp Ltd to set up a 180,000 b/d refinery at Cauvery Basin at Nagapattinam, in the southern Indian state of Tamil Nadhu, Indian oil ministry officials said. IOC holds a 51.9% share in CPCL, while NIOC holds 15.4% through Swiss subsidiary Naftiran Intertrade.

** Global trader Vitol is looking to build a 30,000 b/d refinery in southern Malaysia's Johor state. The project involves a simple refinery to be built at Tanjung Bin at VTTI's ATB tank farm. ATB, or ATT Tanjung Bin Sdn Bhd, is a terminal 100% owned by VTTI. Vitol co-owns VTTI.

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