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Shell has shut down one of its oil processing units at its refinery complex in Singapore to investigate a suspected leak in the system, the Maritime and Port Authority of Singapore (MPA) said on Friday.
The Shell Energy and Chemicals Park at Pulau Bukom, Singapore, is the supermajor’s only energy and chemicals park in Asia.
Shell has informed MPA and the National Environment Agency (NEA) that it shut down one of the oil processing units, which produces refined oil products such as diesel. Water drawn from the sea is used as part of the process to cool the refined oil products in the unit.
Shell estimated that a few tonnes of the refined oil products were leaked, together with the cooling water discharge, the Singaporean authorities said.
MPA and Shell have already deployed boats to clean up light oil sheens observed off Pulau Bukom using both dispersants and absorbent booms, the maritime and port authority said.
Despite the suspected leak, maritime traffic in the area is not affected. There is no impact to bunkering operations in the Port of Singapore, either, the authority added.
Earlier this year, Shell agreed to sell its interest in Singapore Energy and Chemicals Park to CAPGC, a joint venture company of Chandra Asri Capital and Glencore Asian Holdings Pte. Ltd.
In recent weeks, oil trading major Glencore has been buying spot cargoes of Middle Eastern crude grades for the Singaporean refinery, anonymous traders told Bloomberg last week.
Glencore is expected to be a more active player in the physical oil market going forward as it is now procuring crude for the Bukom refining and chemicals complex in Singapore.
Glencore, Trafigura, Vitol, and the other major independent traders have been snapping up refineries and retail network assets that the biggest international oil and gas producers are divesting as part of strategic portfolio realignment.
In this way, commodity traders gain direct access to a refinery to which they can send part of the crude they sell and become larger players in the crude options and futures market to hedge their exposure to physical crude oil.
