Malaysia’s state-owned firm Petronas is planning to shut its 40,000 barrels per day (bpd) Kerteh refinery for planned maintenance in September, industry sources said today.

The refinery, located in Terengganu, will be completely shut for three weeks, the sources added.

The company could not be reached for comment.

Due to its relatively small size, the impact of Kerteh’s shutdown might be minor on the oil products market, traders said.

“Kerteh refinery supplies to the east of the Peninsula, so at the most they might import one oil product cargo,” said a source familiar with the Malaysian market.

“The refinery is heavily reliant on Tapis crude, which has been declining, so the run rates have already been running lower.”

The impact on crude market will be minimal as the company will divert supplies to other local refineries, another source said.

Petronas owns two other refineries in Malaysia, both in Malacca, including a joint venture with US oil company ConocoPhillips.

- Reuters