Oilbank launches new refining unit
Hyundai Oilbank Co. has recently completed the construction of its second heavy oil upgrading plant, as Korean refineries race to get an edge in the high value-added market. The country’s smallest refiner said the new facility located in Daesan, South Chungcheong Province, will enter full operation in mid-May after a four-month test run. The company has invested 2.6 trillion won (US$2.33 billion) in building the unit, which converts heavy oil such as bunker C into more profitable and cleaner fuel, such as gasoline, kerosene and diesel. The new unit is expected to raise Hyundai’s heavy oil upgrading capacity to 120,000 barrels per day (bpd), equivalent to 30.8% of its 390,000 bpd crude oil distillation capacity. It will mark the highest ratio among Korean refiners. Refiners are increasing their investment in heavy oil upgrading units to meet growing demand for light, cleaner fuel. (January 17, 2011)