Refineries in Asia-Pacific have been ramping up their run rates as they anticipate rising fuel demand. The latest data from India’s oil ministry showed refinery run rates averaged 89% in September, compared to 87% in August and 86% a year ago. India’s oil product demand rose 5.2% year-on-year to 4.2 million bpd in September as the country emerged from a deadly second COVID-19 wave.
IOCL runs its nine refineries at around 90% of capacity in October, raising the utilisation rate from 82% in September and 83% a year earlier. BPCL operated at 102% in September, up from 84% a year earlier. Meanwhile, HPCL’s operating rate was at 74%, down from 108% a year earlier amid a maintenance shutdown at its Mumbai refinery.
India’s privately-held Reliance operated its domestic units at 105% in September, up from 102% a year ago and 102.5% in August. Meanwhile, its export-oriented unit ran at 82%, up from 77% a year ago and 75% in August. Its combined run rate came in at 93% in September, up from 89% a year ago and 88% in August. Nayara Energy ran at 93% in September, compared with 89% a year ago and 101% in August.
Vietnam’s Binh Son Refining and Petrochemical operated its 130,000 bpd plant at Dung Quat to 100% on October 20 from 85% earlier in the month as it expected demand to improve after the easing of lockdowns. Vietnam’s Ministry of Transport on October 20 allowed air carriers to increase their domestic flights on several major routes until November 30.
South Korea’s biggest refiner SK Innovation increased its crude throughput as cracking margins improved, a company official said October 29. It raised its utilisation rate to 68% in Q3 from 66% in Q2. However, it remained below the 72% recorded in Q3 2020. Fellow South Korean refiner S-Oil also raised its run rate at Onsan to 99.2% in Q3 from 98.8% in Q2 and 90.7% in Q3 2020.
