(Energy Analytics Institute, 11.Sep.2020) — At the request of the US State Department, Tipco Asphalt plans to temporarily shut down its refinery located in Kemaman, Malaysia. The refinery relies on Venezuelan heavy crude oil for 90% of its feedstock.
To avoid US sanctions, the refinery “will have to shut down temporarily until the sanctions against Venezuela are lifted or we find an alternative feedstock,” Bangkok-based Tipco announced 11 September 2020 in an official letter to the president of the Thailand Stock Exchange.
Tipco said it was contacted in December 2019 by the US Embassy in Thailand, which requested the company stop procurement of Venezuelan oil.
“The US State Department requested us to wind down our crude oil procurement from Venezuela by the end of November 2020, warning the company that, in the event of non-compliance, the company could be subject to US sanctions.”
The Kemaman refinery produces half of Tipco’s asphalt supply, and the shutdown will directly impact its wholesale trading business.
By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.