Bangchak Assures Supplies After Fire At Bangkok Diesel Unit

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Bangchak assures supplies after fire at diesel unit

By NALIN VIBOONCHART

THE NATION

Bangchak Petroleum says the fire at its diesel production unit yesterday will not affect the company's sales, as it has enough inventory, or its plan to operate the refinery under the Euro IV standard in the third quarter of this year.

President Anusorn Saengnimnual yesterday said the company had inventory of crude oil and refined-oil products totalling 5 million barrels, equivalent to 800 million litres, which is enough for domestic consumption over the next two months. Bangchak will divert its diesel fuel to the local market instead of exporting it, to prevent any shortage.

Bangchak's cracker unit that converts bunker oil to diesel was damaged in an accidental fire yesterday morning. Nobody was injured. The company decided to stop operations at all units.

Bangchak said the accident was sparked by a leak in a hydrogen pipeline joint. A loud bang was heard at about 7am followed by the fire.

The fire prompted a brief panic among local residents when white smoke billowed from the unit. Five fire trucks entered the depot compound and managed to put out the fire in about half an hour.

A resident complained that Bangchak had informed nearby communities about the fire only after an hour.

Anusorn said Bangchak estimated revenue loss of Bt30 million due to the fire at the cracker-oil unit. The company is also faced with a similar loss of revenue when it shuts down for maintenance for 35 days, starting on February 24. The company might advance the maintenance shutdown, as the unit damaged by the fire will need to undergo repairs. It is not known when the unit will be ready again for operations.

Bangchak will consider this issue after evaluating the damage. The company is confident that the accident will not affect its overall operations this year.

However, the fire has affected Bangchak's plan to sell liquefied petroleum gas. It will have to reduce LPG sales volume from 4,000 tonnes per month to 2,000. But it expects to sell 6,000 tonnes of LPG in the third quarter as planned.

Anusorn said the damaged unit had a refining output of 25,000 barrels per day of the current output of 95,000bpd. After the maintenance shutdown, it will ramp up refining output to 100,000bpd to offset the decreased output due to the shutdown.

According to a company investigation, the accident occurred because there was a leak in a hydrogen pipeline. It partly resumed refining operations in other units yesterday afternoon. With the exception of the damaged unit, full operations will be restored at the other units today.

Industry Minister Chaiwuti Bannawat visited the site and said the fire was not very serious and Bangchak had efficient control measures.

Energy Minister Wannarat Charnnukul said Bangchak had a plan to relocate its refinery in the future because it is now very near to communities. But the ministry does not know when the relocation will take place. Bangchak's is the only refinery in the city area.

However, Anusorn said the company had not finalised the plan yet. Bangchak renewed its leasing contract with the department for another 25 years in 2010, so it was too early to think about the relocation.

"If we relocate our refinery, we will need to invest Bt100 billion to have the same refining capacity as in the Bangchak area. The decision will not be made in my time," he said.

-- The Nation 2011-01-15

[mauiguy90]

What a great neighborhood to live in. Sign me up!

[khaowong1]

When I read something like this, I'm reminded that the Thai's want to build a nuclear power plant. Hmmmmm. At least there are no reports of injurys..

[asiawatcher]

Seems the Feb 24th scheduled 'maintenance' date was just a tad too late!

[rheinwiese]

When I read something like this, I'm reminded that the Thai's want to build a nuclear power plant. Hmmmmm. At least there are no reports of injurys..

Exactely my thoughts.

If a reactor will ever be built in Thailand and commissioned, it's time to pack the bags.

In this respect: Google "Bataan Nuclear Power Plant". Sounds familiar?

[Soutpeel]

And there are never fires at UK/US....(insert your nationality here)....refineries or Oil & Gas facilities ?

Based the BS logic here, then following the BP gulf of mexican oil spill, the US should have shut down all their refineries/nuclear power stations.

<deleted> has building a Nuclear PS got to do with a fire in a diesel cracking unit....

Having worked both nuclear and petro-chemical/refineries in many places world wide, The US has some of the pooerest safety and maintenance standards I have ever seen