Taiwan's Formosa Petrochemical Corp., one of the biggest diesel exporters in Asia, will likely resume spot gasoil exports from the second half of January, a source familiar with the matter said on Tuesday.

 

      The spot exports will come after five months and are expected to provide support to the diesel market. The company halted spot diesel and gasoline exports after a fire at a propylene-recovery unit in July damaged some of its surrounding infrastructure.

      Formosa is expected to export about one to two medium range-sized cargoes, or about 720,000 barrels of 500 ppm sulphur gasoil, in the second half of January, the source said.

      Spot exports of the cleaner fuel 10 ppm sulphur diesel are not expected to resume yet, he added.

      The additional volumes of diesel will provide some reprieve to an under-supplied market, especially with Indonesian state energy firm Pertamina expected to import about 4.8 million barrels of high sulphur gasoil in January, traders said.

      Formosa's 540,000 barrels-per-day refinery had been plagued by problems this year, affecting supply especially in the spot market.

      Formosa shut several units at its refinery this month, including a 180,000 bpd crude distillation unit, an 80,000 bpd vacuum distillation unit and a 52,000 bpd VGO hydrotreating unit.

      They are scheduled to restart in mid-January.

      The refinery is currently running at a reduced rate of 310,000 bpd due to the maintenance and will maintain current run rates until the end of December.

      The company has been focusing on meeting term requirements and has not had any spot gasoil exports since July, industry sources said.

      Formosa has awarded a 2012 term contract to sell 500 ppm sulphur diesel to 6-8 buyers and 10 ppm sulphur diesel to three buyers.