CPC refinery to start production by tomorrow

Tuesday, 11 September 2012 01:28 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): The Ceylon Petroleum Corp (Ceypetco) plans to restart production at its sole 50,000 barrels-per-day (bpd) Sapugaskanda refinery by Wednesday after an unplanned shutdown earlier this month, a company source said on Monday.

The refinery which is on the outskirts of the capital Colombo was shut on 1 September after damage to a floating pipeline at the Colombo Port, which compelled a ship carrying crude oil to wait at the port. “Repairs to the pipeline were completed by last Friday and the crude oil has been discharged,” said a company source who declined to be named as he is not authorised to speak to the media. “The refinery should start production either tomorrow or the day after.”

Ceypetco has been seeking oil products in the spot market for prompt delivery due to the disruption in domestic supply.

Its latest tender, issued over the weekend, is for 310,000 barrels of gasoil and jet fuel for delivery on 23 September, industry sources said.

This brings its total prompt requirements of oil products to about 870,000 barrels, to cover the shortfall from the temporary closure of the decades-old refinery.

Ceypetco restarted the refinery on Aug. 10 after having closed it for maintenance on 2 July, which prompted a purchase of nearly two million barrels of oil products, about double its usual monthly import volumes.