Hengyuan announces unplanned shutdown of LRCCU unit

KUALA LUMPUR: Hengyuan Refining Company Bhd has announced that production has been affected due to a shutdown of the long residue catalytic cracking unit (LRCCU) at its refinery plant.

As a result, revenue earned by the company during the shutdown period will be reduced, it said in a filing with Bursa Malaysia.

"The company will put in place mitigating measures to ensure there will be no major disruption of production supply to its customers during the shutdown period," it added.

Following the discovery of a leakage to the carbon monoxide boiler to the LRCCU, Hengyuan said it was shut down for safety reasons.

It said the LRCCU serves as a conversion process to convert the high-boiling point, high-molecular weight hydrocarbons fractions of crude oils into high value consumer petroleum products.

Subsequently, the company was also required to shut down the hydrogen manufacturing unit (HMU) and Euro4Mogas facility (E4M) for inspection as part of regulatory requirements.

Hengyuan said it is taking measures to return its operations to optimum levels on a phased basis in the coming weeks.

In the meantime, the inspection activities originally scheduled for E4M and HMU in the fourth quarter of the year will be executed during the period of shutdown.

"Given the current uncertainties, the financial impact of this incident cannot be reliably estimated at this point but is expected to be material for the company.

"Further updates will be made from time to time when there are material developments," it said.