Shell to cut 200,000 b/d at Singapore refinery starting in July

London (Quantum Commodity Intelligence) - Energy major Shell will implement a planned 200,000 b/d capacity cut at its 500,000 b/d Pulau Bukom refinery in Singapore starting in July, according to media reports Wednesday.

The cut at the refinery, which is Shell's largest wholly-owned refinery, was announced in November as part of the company's plans to reduce its carbon footprint in the long term but the timing was left open-ended.

"Bukom will pivot from a crude-oil, fuels-based product slate towards new low-carbon value chains. We will reduce our crude processing capacity by about half and aim to deliver a significant reduction in CO2 emissions," said Shell at the time.

Shell has already permanently closed its 110,000 b/d Tabangao refinery in the Philippines and other refiners have announced forthcoming closures in the region.

Recent refining margins in Asia have been under pressure as the impact of the Covid pandemic in India bites into demand for products and benchmark Brent crude was rallying Wednesday following a greater than expected crude stock draw in the US.

Asian naphtha has however this week strengthened in line with a surge in European gasoline demand and Saudi Arabia has reduced its June selling price for its crude into Asian markets.