* Refinery expected to be back online this week -source
* Propylene supply likely to be affected -source
* At least two diesel cargoes deferred - traders
SINGAPORE/DUBAI, Jan 16 Abu Dhabi National Oil
Company (ADNOC) has shut half the capacity at its 800,000
barrels-per-day Ruwais refinery after a fire there last week,
three industry sources familiar with the matter said on Monday.
ADNOC has closed the newer section of the refinery, which
doubled its capacity when it started operating in 2015, the
sources said, declining to be identified as they were not
authorised to speak with media.
The refinery is expected to come back online this week, one
of the sources added.
The fire broke out at an olefin conversion unit (OCU) which
produces petrochemical products like propylene, a second source
"(ADNOC) is still exporting products and receiving
feedstock," the first source said, adding that the company had
plenty of oil product inventory and that the impact on supply
would be limited to propylene.
But ADNOC has deferred at least two diesel cargoes which
were expected to load from the refinery in January, traders have
The refinery mainly processes ADNOC's flagship Murban crude
and the producer has been in talks with its crude customers in
Asia to adjust their loadings in January to accommodate the
refinery's outage, trade sources said.
ADNOC is requesting that buyers switch to loading Murban
crude in January instead of Das or Upper Zakum, said a source
with a refinery.
"We can switch but price-wise, it's 50 cents a barrel
difference," the source said, adding that the request had also
been for very prompt delivery.
For a week's shutdown, ADNOC may have to sell up to six
prompt cargoes, the source said.
Another two sources at Asian refineries said ADNOC had been
looking for buyers who could lift additional crude this month. [
(Reporting by Florence Tan and Jessica Jaganathan in SINGAPORE,
Rania El Gamal in DUBAI; Editing by Himani Sarkar and Joseph