Tankers Unable to Offload in Malaysian Port

Tuesday, October 22, 2019

Refineries at Port Dickson on Peninsular Malaysia's west coast are unable to receive crude oil after a port facility that carries crude from the ships to the plants broke down.

A system known as a single point mooring (SPM) unit, a loading buoy anchored offshore that allows tankers to offload their crude via pipeline to the refineries, has been out of service, the refinery operators said.

The SPM connects to a refinery operated by Hengyuan Refining Company Bhd (HRC), a subsidiary of China's Shandong Hengyuan Petrochemical Co, and a second plant owned by the Philippines' largest refiner Petron Corp.

Petron Malaysia Refining & Marketing Bhd (PMRMB) confirmed that its Port Dickson refinery cannot receive crude oil to produce refined products due to an SPM problem, and said it had taken necessary measures to import more refined products to meet its needs.

The SPM is anticipated to return to normal operations by early November and the company's temporary inability to process crude oil at the refinery will not impact its supply of finished products to the market, PMRMB said.

A Shandong-based official with Hengyuan's parent company confirmed the refiner was replacing a broken valve of the pipeline of the SPM unit, but said he has no knowledge how long the repair work would take.

Hengyuan's refinery has a capacity of 156,000 barrels per day (bpd), while Petron's refinery has a crude distillation capacity of 88,000 bpd, according to their websites.

The outage appears to have delayed two ships that were scheduled to unload at the port, shipping data on Refinitiv Eikon showed.

Royal Dutch Shell has chartered the Maran Plato, a Suezmax-sized tanker, to discharge on Oct. 18 and the Torm Valborg, an Aframax-sized vessel, on Oct. 16, the data showed.

But the tankers were still anchored off the port laden with crude as of Tuesday, the data showed.

Shell declined to comment.

When contacted by Reuters, the Port Dickson Marine Department said the companies that have operations in Port Dickson run their own mooring operations and the department was not aware of any delay in shipments as they did not receive any complaints.


(Reporting By Shu Zhang, Florence Tan and Seng Li Peng; Additional reporting by Joseph Sipalan and Enrico Dela Cruz; Editing by Emelia Sithole-Matarise and David Evans)

Categories: Tankers Ports Oil

Related Stories

IEA: Middle East Conflict Reshaping Medium-Term Gas Outlook

Thailand Cancels Offshore Energy Exploration Pact with Cambodia

UAE Exit Weakens OPEC, Raises Risk of Price War

Technology as Enabler of Energy Security in Offshore Asia

Saipem Poised for Middle East Repair Work After Iran War

US-Israel War on Iran Creates Biggest Energy Crisis in History

Strike Threat Grows at Ichthys LNG after Workers Reject Deal

Toyo, OneSubsea Form Subsea CCS Partnership

Japan to Launch $10B Fund to Help Asia Secure Oil

Offshore Vietnam: Energy Imports Rise as Domestic Production Falls

Current News

Lloyd’s Register Approves Wison’s Internal Turret FPSO Concept

Gulf Marine Services Profit Plunges After Gulf Vessel Evacuations

Eni Advances Giant Indonesia Gas Discovery after ‘Exceptional’ Well Test

IEA: Middle East Conflict Reshaping Medium-Term Gas Outlook

ADNOC Drilling Finalizes MB Petroleum JV, Expands Regional Fleet

Brent Near $114 as Middle East Conflict Continues

Thailand Cancels Offshore Energy Exploration Pact with Cambodia

Vessel Sector Deep Dive: WTIVs

Indonesia’s Mako Gas Project on Track for First Gas in 2027

CNOOC’s First Quarter Profit Rises on Higher Oil Prices, Output

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com