Home » Energy » Saudi Aramco plans maintenance at two refineries in Nov-Dec

Saudi Aramco plans maintenance at two refineries in Nov-Dec

Haradh, SAUDI ARABIA:  A general view shows a new plant inaugurated 22 March 2006 in Haradh, about 280 kms (170 miles) southwest of the eastern Saudi oil city of Dhahran, launching a project adding 300,000 barrels of oil to the kingdom's daily production capacity. The facility which was opened today in a ceremony attended by Saudi Oil Minister Ali al-Nuaimi was completed in January, ahead of schedule, the company said. Approximately 160 kms (100 miles) of new pipeline and extensions will transport crude and gas products to processing facilities further north in the Eastern Province, a statement said. Saudi Arabia, the world's top crude producer and exporter, currently pumps around 9.5 million bpd of oil and has a production capacity of around 11 million bpd.  AFP PHOTO/STR  (Photo credit should read -/AFP/Getty Images)



Saudi Aramco plans to shut two refineries towards the end of this year for scheduled maintenance, four sources close to the matter said, which could free up more of the state oil company’s crude for export.
Saudi Aramco has scheduled maintenance at its refinery in Yanbu and its largest refinery in Ras Tanura in November and December, the sources said. Each shutdown could add 4 million to 8 million barrels of crude into global markets, depending on the extent of the shutdowns and their duration, according to Reuters’ calculations.
A rise in Saudi crude exports on top of a recovery in Nigerian production would add to global supply which is likely to weigh on oil prices and push a potential market re-balancing further out into 2017.”It’s bullish for refining margins but very bearish for crude,” said an oil analyst who declined to be named due to company policy. “Saudi crude exports will climb.” Saudi Arabia’s fuel output will also fall during the maintenance, in particular middle distillates such as diesel and jet fuel, helping to tighten the market during peak winter demand in the northern hemisphere.
Yanbu Aramco Sinopec Refining Co (Yasref), owned 62.5 percent by Aramco and the rest by China’s Sinopec, is expected to shut its 400,000 barrel-per-day refinery complex for maintenance in November, the sources said.
This could last for 10-15 days, one of the sources said. Separately, Saudi Aramco plans to carry out maintenance at the Ras Tanura refinery in December for 20-25 days, which may involve only the 325,000-bpd crude distillation unit (CDU), the sources added.
Saudi Aramco and Sinopec do not comment on refinery operations.

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend