Aster cuts diesel output at Singapore Bukom refinery

[SINGAPORE] Singapore’s Aster Chemicals and Energy has cut diesel output at its Bukom refinery this month, three sources familiar with the matter said on Thursday (Nov 13), driving premiums on 10ppm (parts per million) low-sulphur diesel to fresh highs.

Aster has reduced operations at its hydrocracker and hydrodesulphurisation units amid a lack of hydrogen supply from its reformer unit, they said.

Hydrocrackers typically break down heavier oil feedstock into lighter products such as diesel, while hydrodesulphurisation units remove sulphur from refined fuels.

The production issue could affect some 60,000-100,000 tonnes (447,000-745,000 barrels) of diesel output in November, one of the three sources and a fourth source added.

Disruption in Bukom’s diesel supply was one of the key drivers of spot premiums for the industrial fuel since late last week, multiple trade sources said.

Robust buying enquiries were on the trading window for end-November cargoes from traders including Glencore, which partly owns and receives products from the Bukom refinery, according to traders’ data.

“Our refinery is currently running at planned rates,” a company spokesperson said in an email, adding that the company’s operations are proceeding as usual.

The Bukom refinery can process up to 237,000 barrels per day (bpd) of crude.

These production hiccups are expected to persist until the end of November, one of the three sources said.

SEE ALSO

New Aster unit inks Sembcorp Solar deal for power worth 17,000 cars’ emissions

Meanwhile, Aster’s naphtha cracker at the Bukom site is expected to be shut until the first quarter next year, according to a customer letter seen by Reuters. The cracker is likely to restart in February or March next year, another two sources with direct knowledge of the matter said. The company issued a force majeure on petrochemical supplies in August.

“On our ethylene cracker, we continue to engage with our customers closely as we make progress on the recovery works for Q1 2026,” Aster’s spokesperson said.