A fire at an oil refining plant in Yunlin County will not affect the supply of fuel to the domestic market, a spokesman for Formosa Petrochemical Corp. (FPCC) (TAIEX:6505), the largest privately run oil refinery in Taiwan, said Monday.

Lin Keh-yen said the fire, which broke out late Sunday night, hit the company's No. 2 oil refinery that produces gasoline and diesel fuel, but he indicated that FPCC's output of the fuels far outpaces domestic demand.

Because most of the plant's output is sold overseas, the accident "will not jolt the domestic market or prices," the spokesman said.

According to Lin, FPCC now exports 60 percent of the gasoline and 90 percent of the diesel fuel it produces. If the supply to the domestic market falls below demand, the company will divert some of its production for export to make up the shortage, he said.

Asked about the extent of the damage caused by the fire, Lin said an initial estimate put direct losses at around NT$500 million (US$15.56 million).

As for indirect losses, and how many days the factory will remain closed because of the blaze, Lin said that the answers to those questions will not be known until an investigation is launched at the site of the fire.

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