Pertamina squashes refinery market talk<\/p>\n
SINGAPORE (Reuter): A Pertamina source squashed market talk
\nyesterday that the Musi refinery was having problems restarting a
\nunit, forcing Indonesia to buy extra amounts of gas oil.<\/p>\n
The 33,000-barrel-per-day (bpd) crude distillation unit (CDU-
\n5) at the refinery was shut for scheduled maintenance on May 25
\nand resumed operations on June 19, the source at the state oil
\ncompany said.<\/p>\n
But market talk had suggested the refinery was having problems
\nrestarting the CDU and traders were closely watching Indonesia's
\ngas oil imports for July.<\/p>\n
So far Indonesia has bought 2.5 million barrels for July and
\nwas rumored to be seeking additional cargoes for July.<\/p>\n
Traders said market talk suggested Pertamina was forced to buy
\na prompt 30,000-ton gas oil cargo from a Singapore trader this
\nweek because of the problems and that it might be negotiating to
\nbuy another 80,000 tons for mid-July delivery.<\/p>\n
But the Singapore swaps market was not too excited, brokers
\nsaid. July paper was being discussed at $24.35\/$24.45 per barrel,
\nwhich straddled Wednesday's levels.<\/p>\n
The Musi refinery has five CDUs -- CDU-2 to CDU-6-- and has a
\ntotal crude processing capacity of 136,000 bpd.<\/p>\n
The source said the refinery was running at slightly under
\ncapacity of 133,000-134,000 bpd.<\/p>\n
The source said one of two redistillation units which is
\nlinked to CDU-5 was currently undergoing modification to raise
\nits current 6,000-bpd capacity to 10,000 bpd by August or
\nSeptember.<\/p>\n
Upon completion, redistillation unit one would be converted
\ninto the refinery's sixth crude unit or CDU-7.<\/p>\n
The source said the modification had not disrupted operations
\nat CDU-5.<\/p>\n
But traders noted that Indonesia might buy more in August
\nahead of a scheduled shutdown at a 200,000-bpd crude unit at the
\nCilacap refinery in September, and the turnaround at the 125,000-
\nbpd Balongan refinery in October.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-squashes-refinery-market-talk-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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