More diesel imported for power generation
SINGAPORE: The Ceylon Petroleum Corporation has bought about
1.08 million barrels of diesel for delivery this month, to replenish its
storage tanks at Muthurajawela amid an increased demand for power
generation.
A decline in rainfall saw the country’s dependence on hydropower
decrease, while a brief shutdown at Ceypetco’s 50,000 barrel per day
Sapugaskanda refinery until mid-February lifted diesel imports.
Meanwhile, Ceypetco is likely to award its import tender for 300,000
barrels of medium-sulphur gas oil to Trafigura, which offered the lowest
price, a company source said on Friday.
The European trader offered a premium of 68 cents to Singapore spot
quotes for the 0.25 percent sulphur gas oil parcel, which topped three
other offers ranging from 91 cents to $2.74 a barrel premium.
“The cargoes could be distressed, hence the very low price,” the
source said.
Usually private Indian refiner, Reliance, wins Ceypetco’s light and
middle distillates buy tenders with its lowest offers, due to its
advantage in freight costs and ability to produce products from low
quality crude. Of the total, 40,000 barrels of gas oil is tendered on
behalf of Lanka Marine Services.
If Ceypetco awards this tender, the state oil firm would be importing
410,000 barrels for next month so far. The delivery date is scheduled
for March 17-18 on a cost-and-freight basis (C&F) into Colombo.
In a previous tender, Ceypetco paid a $1.62 a barrel premium to
Singapore quotes for 150,000 barrels of similar grade for an earlier
March delivery.
Reuters |
