Minister assures no oil supply disruption
Energy Ministery Arak Chonlatanon assured that oil supply would not be disrupted though the 30-day suspension of Bangchak Petroleum's refinery complex would cut output by 80,000 barrels a day.
At the press conference following the fire eruption at the complex early this morning, Arak said that six refineries in Thailand are churning 1 million barrels per day. Bangchak's refining capacity, at 90,900 barrels a day, accounts for only 9.9 per cent of total.
"With the ratio, the disappearing output would not send a serious impact on the overall output, as Thailand's actual refining capacity is 1.1 million barrels. Moreover, we still have sufficient reserves, which could accommodate the adverse effect," he told reporters.
Three measures are outlined to cope with the situation.
1. Bangchak's reserves would be released: petrol reserves which could last 16 days, diesel by 9 days and bunker oil by 24 days.
2. Other refineries like Thai Oil and IRPC are ordered to increase output, primarily by 35,000 barrels a day.
3. Oil retailers which rely on supply from Bangchak, like PTT, Chevron and Siam Chemicals, are allowed to use their current oil reserves.
"The Energy Ministry hereby can assure that the blaze would not affect the country's oil supply, as the measures would definitely sustain demand while Bangchak's third crude-distillation unit is under 1-month susspension," Arak said.
Earlier, Nattachart Charuchinda, chief officer for PTT's downstream petroleum business, said that PTT Plc stands ready to supply more oil products to the market, following blaze at Bangchak Petroleum's refinery complex which led to the 30-day suspension.
"We stand ready to find substitution," he said.
Today morning, PTT assigned 18 officers to to assist Bangchak's fire extinguishing team, with 7,000 litres of water and foam.
Bangchak is a business unit under PTT.
In January, 2011, the refinery complex in Soi Sukhumvit 64 was also caught on fire. Then, fire broke out at a diesel production unit with a capacity of 25,000 barrels per day. Today, the company reported that the equipment in Kerosene Stripper in the third crude-distillation unit was ignited.
Given that Soi Sukhumvit 64 is a populated area, fires at the complex have sparked talks on relocation. Officials have mixed views on this, given that Bangchak just recently invested billions of baht to upgrade the complex.
Bangchak said in a statement that the fire was contained and there was no injury caused.
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