Taiwanese Mull Group II Refinery


Chinese Petroleum Corp. plans to build Taiwans second base oil refinery, though probably not for at least four years.

An official with the island nations state-owned oil company said it intends to build a Group II plant with capacity to produce 4,400 barrels per day. The project would cost 4.5 billion Taiwanese dollars (US$130 million). A schedule has not been set because the refinery has not yet been worked into CPCs budget. Current thought, however, is for the facility to open by 2007.

The official, who spoke on condition of anonymity, downplayed recent reports that CPC is considering building the refinery as a joint venture with Formosa Petrochemical Corp.

I would not say that its not possible, but its quite a remote possibility, he said. We will most likely build it ourselves.

Taiwan currently has one base oil refinery – a joint venture between CPC and Royal Dutch/Shell. It is located in Kaohsiung and has capacity to produce 4,200 b/d of Group I stocks. Taiwan imports a significant amount of base oil, much of it to be blended by international companies. CPC says the island needs Group II production to meet growing demand for better quality automotive and industrial lubricants.

Formosa Petrochemicals is part of Formosa Plastics Group, which does not have any base oil activities. It recently entered the fuels refining business, where it competes with CPC.

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