Shell shuts Malaysian plant

Shell shuts Malaysian plant

KUALA LUMPUR (Reuters): A Malaysian unit of Royal Dutch Shell said yesterday it had shut down a plant on Borneo island after an explosion injured 12 people and set tanks on fire.

The explosion occurred at about 10:50 p.m. (1450 GMT) on Thursday at Shell MDS Malaysia Sdn Bhd's 400,000-ton middle distillate synthesis plant in Bintulu town in Sarawak state.

"The plant has been shut down for safety and security reasons as well as for damage control and assessment," Shell Companies of Malaysia said in a statement yesterday.

A Shell spokeswoman in the capital Kuala Lumpur said the plant converted natural gas into liquid hydrocarbons.

Two tanks were still burning at around 1:00 p.m. (0500 GMT) yesterday. "Two tanks are on fire," a Shell spokesman in Bintulu told Reuters by telephone. "We are still trying to contain the fire."

Investigations had been launched to establish the cause of the fire, the company statement said.