Economy may lose more than $100m if refinery is closed for a month: Economists

Pulau Bukom Shell refinery fire: Counting the losses      Published on Oct 5, 2011 in the Straits Times

 

What Shell's Pulau Bukom offshore petroleum complex in Singapore looked like after a fire was put out on Sept 29. -- PHOTO: REUTERS

By Robin Chan

 

The all clear was given on Shell's Pulau Bukom refinery site on Tuesday, even as operations remain in the process of being shut down. An all-clear safety siren was sounded at 2pm. However, the area around what is known as pump house 43, which is where the fire broke out seven days ago, is still under 'strict control' according to an internal staff memo.

The local economy could suffer a hit of more than a $100 million if the massive Bukom refinery closes for a month, economists have said. The oil giant's plant, which refines 500,000 barrels a day and is Shell's largest in the world, was shut down following a 32-hour fire last week.

Economists looked at the value added to the economy from the petroleum refining and petrochemicals industries, to estimate the cost of closing the plant. Naturally, the costs will vary depending on how long the closure lasts and how much economic activity is lost.