Formosa Petrochemical Corp, Taiwan's leading private refiner, will receive 2mn barrels of crude oil at Mailiao Port, according to company president Lin Keh-yen on May 5, Taipei Times reports. The Liberian-flagged FPMC C Lord, operated by Formosa Plastics Marine Corp, is carrying Saudi Arabian crude to help restock depleted inventories. This delivery is essential for the island's energy security as domestic processing has slowed significantly due to overseas shipping delays.
The arrival is a critical turning point for the Taiwanese refiner, which saw productivity collapse following Middle East supply chain fractures. The ability to navigate the Strait of Hormuz suggests a stabilisation of energy flows despite ongoing regional conflict.
Refinery utilisation rates plunged to 43% in April as shipments failed to arrive due to the blockade of the Strait of Hormuz. The company’s naphtha cracking units were hit even harder, with rates dropping to 33%.
Operations are now expected to recover. Formosa Petrochemical predicts utilisation rates will climb above 60% in May and reach 80% in June. The company is diversifying its procurement to include oil from the Red Sea, Gulf of Oman, the Mediterranean, and West Africa to avoid further Persian Gulf disruptions.
The refiner implemented emergency measures in late March after several contracted cargoes failed to arrive. These included rerouting ships and securing alternative supply lines.
Despite the supply rebound, the petrochemical outlook remains grim. High costs and weak downstream demand continue to pressure margins. The company shuttered its No. 3 olefin plant on March 24, leaving just one ethylene plant active. Lin warned that the global market faces a prolonged shortage if Middle East hostilities continue.
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