Fire at Shell's Singapore refinery surges again
A fire at Royal Dutch Shell Plc's largest refinery, a half-a-million barrels-per-day plant in Singapore, surged again on Thursday, defying efforts by firefighters who have struggled to put out the blaze since Wednesday afternoon, Reuters reports. Singapore is the world's largest market for fuel oil and Asia's hub for crude and refined product trading, and any disruptions from the fire could impact regional prices as some capacity has already been taken offline.
Asian oil products' swaps timespreads surged on Thursday, largely due to the fire which has so far forced Shell to shut down a diesel-making unit.
Shell has so far issued statements saying the fire has been contained, but it has so far surged twice since then. The company has said it could continue to supply the market from storage and other refineries.
The cause of the blaze is so far unknown and at least 100 firefighters are at he plant on Bukom island off Singapore's shores.
Some 250 Shell employees have been evacuated off the island.
"There has been a surge in the fire at the manufacturing facility," Singapore Civil Defence Force (SCDF) said in a statement. "The fire is still contained within the bund wall. Boundary cooling operation is still being carried out to prevent heat exposure to the nearby storage tanks."
At least one shipowner said his ship had to pull off from the loading berth at around 1000 GMT on Wednesday, more than 5 hours after the fire started.
"We had to cast off (from the berth) halfway through the loading," the shipping source said.
"Our vessel is sitting at anchorage now, waiting for further instructions from Shell's terminal, but no indication has been given on when we can go back in."
Shell, in a statement earlier in the day, said the fire had "been significantly reduced" adding that staff continued to report for work at the island. The company could not immediately be reached for comment about the latest surge.
MARKET IMPACT
Crude processing units at the plant, which make up more than a third of the island nation's total refining capacity, were running at a reduced rate, Shell said on Wednesday.
Production units near the blaze were shut as a precaution. Shell said in the process of the closure, a larger flare would be visible, but that it would not release any toxic vapours.
One Shell firefighter suffered a superficial injury, and five others had heat exhaustion and pulled muscles, the company said. Three civil defence force fire engines were also damaged.
The company said the fire had damaged the pump room, which contains pipes used for blending refined fuels.
Shell is operating its ethylene cracker normally using alternative feedstock. The ethylene cracker is typically fed by products from the hydrocracking unit that was shut.
Shell, one of the biggest naphtha traders and suppliers in Asia, sold an unusually heavy volume of at least 40,000 tonnes of prompt October/November naphtha swaps on Wednesday, traders said.
The smoke plume generated from the fire has not affected Singapore so far, the National Environment Agency said. In a statement, the agency said it was keeping a close watch on the situation and asked the public not to be alarmed.
Asian oil products' swaps timespreads surged on Thursday, largely due to the fire which has so far forced Shell to shut down a diesel-making unit.
Shell has so far issued statements saying the fire has been contained, but it has so far surged twice since then. The company has said it could continue to supply the market from storage and other refineries.
The cause of the blaze is so far unknown and at least 100 firefighters are at he plant on Bukom island off Singapore's shores.
Some 250 Shell employees have been evacuated off the island.
"There has been a surge in the fire at the manufacturing facility," Singapore Civil Defence Force (SCDF) said in a statement. "The fire is still contained within the bund wall. Boundary cooling operation is still being carried out to prevent heat exposure to the nearby storage tanks."
At least one shipowner said his ship had to pull off from the loading berth at around 1000 GMT on Wednesday, more than 5 hours after the fire started.
"We had to cast off (from the berth) halfway through the loading," the shipping source said.
"Our vessel is sitting at anchorage now, waiting for further instructions from Shell's terminal, but no indication has been given on when we can go back in."
Shell, in a statement earlier in the day, said the fire had "been significantly reduced" adding that staff continued to report for work at the island. The company could not immediately be reached for comment about the latest surge.
MARKET IMPACT
Crude processing units at the plant, which make up more than a third of the island nation's total refining capacity, were running at a reduced rate, Shell said on Wednesday.
Production units near the blaze were shut as a precaution. Shell said in the process of the closure, a larger flare would be visible, but that it would not release any toxic vapours.
One Shell firefighter suffered a superficial injury, and five others had heat exhaustion and pulled muscles, the company said. Three civil defence force fire engines were also damaged.
The company said the fire had damaged the pump room, which contains pipes used for blending refined fuels.
Shell is operating its ethylene cracker normally using alternative feedstock. The ethylene cracker is typically fed by products from the hydrocracking unit that was shut.
Shell, one of the biggest naphtha traders and suppliers in Asia, sold an unusually heavy volume of at least 40,000 tonnes of prompt October/November naphtha swaps on Wednesday, traders said.
The smoke plume generated from the fire has not affected Singapore so far, the National Environment Agency said. In a statement, the agency said it was keeping a close watch on the situation and asked the public not to be alarmed.