Market sources report that Malaysia's Pengerang Refining Company, or Prefchem, has sold more fuel oil with low sulphur straight runs (LSSRs) in a Friday-closed tender, due to the fact that a refinery that processes this fuel remained closed.

In its latest tender, the refiner offered to load two different cargoes. The refiner is scheduled to deliver a 250,000-barrel shipment on September 15-16. A 540,000-barrel load is scheduled for September 24-25.

Prefchem had sold two LSSR fuel shipments totaling 1,08 million barrels to be loaded on September 4-6, and September 9-11.

Petronas Malaysia, the state-owned energy company that owns Prefchem in half, has not responded to a comment request.

Sources said that the refiner offered more fuel oil after one of its 70,000 barrels-per-day residual fluid catalytic Cracking (RFCC), units unexpectedly closed around mid August.

One source who has direct knowledge of this matter stated that the unit should restart in two weeks.

In a RFCC, fuel oil is usually processed to create higher-value products like gasoline.

Prefchem is a joint venture between Petronas, Saudi Aramco and operates a refinery that produces 300,000 barrels of oil per day in Pengerang. (Reporting and editing by Jeslyn Yap and Trixie Lerh)

(source: Reuters)