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Planet Ark World Environment News - in partnership with Colonial First State NZ Plant Sets Nov Shutdown Ahead of Clean Fuel Rule

Date: 15-Feb-08
Country: SINGAPORE
Author: Felicia Loo

Besides the crude unit, the refiner will also shut a desulphuriser for maintenance.

"The maintenance will include the changing of the catalyst," said the official, who declined to be named.

The turnaround is part of a wider project to expand the refinery. Details are not immediately available.

The plant, located in the north, typically processes a mix of Middle East high-sulphur crude and Asia Pacific sweet grades.

New Zealand, which consumes 20,000 bpd of diesel, will switch to gas oil with sulphur content of 0.001 percent from January onwards, from the current 0.005 percent.

The country taps more on hydropower and renewables to meet its energy needs.

"The refinery will start producing the new grade from September and will market it from January. It's a matter of logistics," the official added.

The country typically imports gas oil cargoes from Singapore and sometimes Australia.

Currently, only a few refiners in the Asia Pacific region can produce clean fuels that are in line with tight sulphur regulations in the European Union, energy consultancy Wood Mackenzie said in December.

Oil refiners in Asia Pacific were likely to face costs of up to $25 billion to produce lower-sulphur clean fuels, Wood Mackenzie said.

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