Factbox: Asia refineries cut runs on Middle East oil disruption

Mangalore Refinery and Petrochemicals

06/03/2026 10:13

Updates March 5 article to add Aster under SINGAPORE

By Ruth Chai

March 6 (Reuters) - The U.S.-Israel war on Iran has disrupted oil exports from the Middle East to Asia, forcing some Asian refineries to cut runs and petrochemical companies to declare force majeure.

Here are some of the latest developments:

CHINA

Zhejiang Petrochemical Corp, a major Chinese refiner backed by Saudi Aramco 2222.SE, has shut a 200,000-barrel-per-day unit, bringing forward maintenance in response to the Middle East conflict's impact on crude supply.

Separately, another Chinese refiner backed by Aramco, Fujian Refining and Petrochemical Co, or FREP, shut its 80,000 bpd crude unit - its smallest - for an unspecified amount of time, two industry sources familiar with the matter said.

Independent Chinese refiners, however, have enough supply on hand to weather near-term disruption from the Iran conflict, bolstered by recent record purchases of Iranian and Russian crude and robust government stockpiling, traders said.

China has also urged companies to suspend signing new contracts to export refined fuel, and to try to cancel shipments already committed, people familiar with the matter said.

INDIA

India's Mangalore Refinery and Petrochemicals MRPL.NS has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage, sources said.

SOUTH KOREA

South Korean petrochemical company Yeochun NCC has cut its output and declared force majeure on its supply as it is unable to receive naphtha feedstock due to the Strait of Hormuz blockade, according to a source with knowledge of the matter and a company letter reviewed by Reuters.

SINGAPORE

Singapore petrochemical firm PCS has declared force majeure on shipments as the Middle East war has disrupted maritime transportation and supply chains, according to a letter reviewed by Reuters and three people with knowledge of the matter.

Meanwhile, Singapore refiner and petrochemical major Aster Chemicals and Energy has declared force majeure regarding supplies, a company spokesperson said on Friday.

Products covered by the force majeure include ethylene and propylene. Aster's steam cracker was running at around 50% on Friday, having restarted at the end of February, sources said.

INDONESIA

Indonesian petrochemical producer Chandra Asri TPIA.JK has declared force majeure on all contracts as the Middle East conflict has disrupted its raw material supply, it said in a statement reviewed by Reuters.

VIETNAM

Vietnam's Binh Son Refining and Petrochemical has asked the government to prioritize supplying domestically produced crude oil to its Dung Quat Refinery while limiting crude exports until at least the end of the third quarter this year to ensure national security, it said in a statement earlier this week.

 (Reporting by Ruth Chai; Editing by Nivedita Bhattacharjee)

 ((Ruth.Chai@thomsonreuters.com;))