S-Oil resumes production at No.2 RFCC after fire incident -filing

SEOUL (Reuters) - South Korea’s S-Oil Corp said on Monday it has resumed production at its No.2 residue fluidized catalytic cracking (RFCC) unit after a blast at its Onsan refinery that killed one person last week.

South Korea’s third-largest refiner said it plans to resume production at its No.1 paraxylene (PX) unit after scheduled maintenance between June 8 and July 15, the refiner said in a filing.

The refiner, which is majority owned by Saudi Aramco, had suspended output at its units in the city of Ulsan as a precaution since they were near the resulting fire.

The refiner also suspended production of several processing units in Osnan, a move that raised concerns about gasoline supplies in the Asian markets and drove refining margins for gasoline to a record high of $37.27 a barrel on Friday.

S-Oil exports gasoline mainly to Japan, Malaysia, Australia, Singapore and the Philippines, according to data from energy consultancy Vortexa.

“Although the S-Oil outage is significant, South Korea will still have a lot to export since there are other big refineries in the area,” a Singapore-based trade source said, adding that Asia’s cracks for gasoline have already been trading at high levels due to tight supplies.

(This story has been refiled to remove superfluous word ‘on’ from headline)

Reporting by Heekyong Yang and Mohi Narayan, Editing by Louise Heavens and Louise Heavens