South Korean refiners are expected to shut down less production capacity during the maintenance season this year as improved margins for fuel products and reduced output elsewhere in Asia prompt local firms to boost sales to other countries in the region.
Profits from exports have improved following a reduction in production runs amongst other Asian refiners. Fewer shutdowns would therefore enable South Korean refiners to benefit from an increase in exports to countries like Europe, Japan and Vietnam.
According to four refinery officials surveyed by
Bloomberg News, Asia’s largest oil-product exporter will shut 15 percent of the country's total capacity, or 410,000 barrels-a-day, during the first half of June. During the same period in 2008, approximately 24 percent of capacity was shut down.
Asian refiners typically carry out maintenance and safety checks between the months of April and June before the peak driving season. Some units are also shut down in October and November before the surge in demand for heating fuel in winter.
These reductions in oil output sometimes result in there being limited availability of marine fuels with product being diverted for use in the inland market.
Below is a table (source: Bloomberg) of planned shutdowns of crude distillation units and secondary units at South Korean refineries this year:
| Company: Refinery Unit |
Capacity (Bbls/day) |
Period |
| SK Energy Co.: Ulsan refinery: |
| No. 1 Crude Distillation Unit | 60,000 | June 19-June 23 |
| No. 2 Crude Distillation Unit | 110,000 | June 3-June 30 |
| No. 3 Crude Distillation Unit | 170,000 | No Turnaround |
| No. 4 Crude Distillation Unit | 240,000 | March 27-April 29 |
| No. 5 Crude Distillation Unit | 260,000 | No Turnaround |
| Total Capacity | 840,000 | |
| Secondary Units: |
| No. 3 Middle Distillation Unit | 45,000 | April 1-April 24 |
| No. 4 Middle Distillation Unit | 58,000 | March 29-April 29 |
| No. 1 Residue Desulfurizer | 72,000 | June 6-July 2 |
| No. 2 Residue Desulfurizer | 80,000 | April 29-June 3 |
| Vacuum Residue Desulfurizer | 38,000 | April 2-April 25 |
| No. 2 Vacuum Distillation Unit | 88,000 | April 2-April 25 |
| No. 3 Vacuum Distillation Unit | 18,000 | April 2-April 25 |
| No. 4 Vacuum Distillation Unit | 13,000 | April 2-April 25 |
| Incheon Refinery: |
| No. 1 Crude Distillation Unit | 75,000 | No Turnaround |
| No. 2 Crude Distillation Unit | 200,000 | No Turnaround |
| Total Capacity | 275,000 | |
| Secondary Units: |
| No turnaround planned for secondary units |
| GS Caltex Corp.: Yosu Refinery |
| No. 1 Crude Distillation Unit | 100,000 | No Turnaround |
| No. 2 Crude Distillation Unit | 150,000 | No Turnaround |
| No. 3 Crude Distillation Unit | 150,000 | No Turnaround |
| No. 4 Crude Distillation Unit | 300,000 | May 7-June 8 |
| Total Capacity | 700,000 | |
| Secondary Units: |
| Reformer | 10,000 | Sept. 1-Sept. 12 |
| Reformer | 7,000 | Oct. 7-Oct. 19 |
| No. 2 Kero-Diesel Desulfurizer | 70,000 | May 7-June 5 |
| Naphtha Desulfurizer | 30,000 | Feb. 6-March 22 |
| No. 1 Fluid Catalytic Cracker | 93,000 | Feb. 6-March 22 |
| No. 2 Fluid Catalytic Cracker | 60,000 | May 7-June 8 |
| Naphtha Splitter | 90,000 | March 6-April 1 |
| S-Oil Corp.: Onsan Refinery: |
| No. 1 Crude Distillation Unit | 93,000 | April 1-April 19 |
| No. 2 Crude Distillation Unit | 232,000 | No Turnaround |
| No. 3 Crude Distillation Unit | 250,000 | No Turnaround |
| Total Capacity | 575,000 | |
| Secondary Units: |
| No. 1 Kero-Diesel Desulfurizer | 22,000 | April 3-April 18 |
| No. 1 Vacuum Residue Desulfurizer | 40,000 | April 1-April 26 |
| No. 2 Vacuum Residue Desulfurizer | 40,000 | Oct. 5-Oct. 30 |
| Hyundai Oilbank Co.: Daesan Refinery |
| No. 1 Crude Distillation Unit | 110,000 | No Turnaround |
| No. 2 Crude Distillation Unit | 285,000 | No Turnaround |
| Total Capacity | 395,000 | |
| Secondary Units: |
| No. 1 Reformer | 4,000 | 7 days in February |
| No. 1 Reformer | 4,000 | 7 days in September |
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