Shell Singapore, Singapore, Asia’s energy-trading hub, is bracing for a shutdown of its largest refinery after a fire at Royal Dutch Shell’s Bukom plant on Wednesday raised the prospect of disruptions to the region’s oil flows.
Shell shut down a hydrocracker at the refinery, which would hit gas oil and jet fuel production, while all crude units were operating at reduced rates.
Gasoline-making fluid catalytic cracker (FCC) units and the refinery’s ethylene cracker were operating normally.
The fire comes at a time when refiners across Asia are running close to capacity to benefit from attractive margins.
The refinery processes 500,000 barrels of crude oil per day and is Shell’s largest.
Singapore’s key position in global oil markets means any disruption could exaggerate the impact on regional prices in relation to the capacity taken offline.