SK Energy starts new complex refinery unit

South Korea’s SK Energy started operations at its new Residual Fluid Catalytic Cracker (RFCC) in mid-June in Incheon. The operation comes slightly earlier than the refiner’s initial schedule of late June or early July. “The new RFCC started on June 12, and is now running at 80% of its capacity,” said an SK Energy spokesperson. The unit will reach the full 60,000 barrels per day (bpd) capacity at the end of June, she added. SK Energy has been sending less fuel oil to Singapore since earlier this year as the new No.2 RFCC uses fuel oil as feedstock to produce higher value products such as gasoline and diesel fuel. “SK Energy is likely to become an importer of fuel oil in the latter half of the year with the new unit,” said a company source. The new unit may help meet strong regional demand for gasoline from China and Indonesia, while tightening the fuel oil market, which faces ample arbitrage volumes amid weak demand from China, industry sources said. (June 17, 2008)