Seoul-The economic downturn has cast a shadow over South Korean refiners’ plans to upgrade their plants, with sluggish products demand, negative margins and high construction costs leaving them questioning the viability of projects, a Platts survey showed. GS Caltex, South Korea’s second-largest refiner, has delayed construction of a 113,000 b/d heavy oil upgrading unit at its 680,000 b/d Yeosu plant by two years from late 2010 to the end of 2012. The decision came after Standard & Poor’s recently downgraded the refiner’s credit rating, citing aggressive spending and a high gearing ratio.
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