Argus reported that Taiwanese private sector refiner Formosa Petrochemical has restarted 80,000 barrels per day residual desulphurization unit and raised operating rates at its 540,000 barrels per day Mailiao refinery after a week long disruption.

The increased output has done little to boost sentiment the Asian gasoil market that is already well supplied, exacerbated by poor arbitrage economics to Europe or the US.

Formosa restarted the residual desulphurization unit on September 9th 2010, while runs rates at two of its three 180,000 barrels per day capacity crude distillation units were raised to around 95%. The residual desulphurization unit was shut a week ago to allow Formosa to carry out further investigations and make design corrections at the refinery following a fire in late July 2010.

Any spot exports of gasoil by the refiner are expected to be minimal despite the restart, partly because of current bearish market conditions as Formosa works towards fulfilling term commitments that may include delayed shipments.

Formosa's other 80,000 barrels per day residual desulphurization unit remains shut indefinitely, with its No 3 CDU shut since the fire and not scheduled to restart until around October 2010.

(Sourced from www.argusmedia.com)