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Indian Oil buys its first crude from Canadian Suncor

March 17/2017

MOSCOW (MRC) -- Indian Oil Corp became India's first refiner to buy light sweet Hibernia crude from Canada's largest oil company, doing the deal after the opening of the arbitrage for Canadian oil to flow to Asia, reported Reuters.

Production in North America, led by US shale output, is increasing after supply cuts by OPEC and non-OPEC countries pushed oil prices to above USD50 a barrel.

This was also the first time that Suncor Energy has sold a cargo of offshore Canadian crude to IOC, a Suncor spokeswoman Sneh Seetal said on Wednesday.

Seetal declined to say how big the cargo was or when it would load, but confirmed Canada's biggest oil company had won an Indian Oil Corp tender.

"We do market our offshore crude production globally on an opportunistic basis," she said.

Trade sources said Suncor sold the 1-MM-barrel cargo of Hibernia crude to IOC on a free on board basis. Separately, IOC has also bought its first Russian Urals crude cargo in about a year in another tender.

IOC previously bought a cargo of Canadian White Rose oil in November 2013. State-refiners like IOC were last year given the freedom to draw up the crude import strategies that would allow them to make swift gains from changing market dynamics.

News of the Suncor cargo comes after market sources this week said two other vessels carrying Atlantic Canadian crude are on their way to China.

The Stena Suede and the Jag Lalit, both Suezmaxes, loaded at Whiffen Head terminal, Newfoundland, according to Reuters ship tracking data. At least one of them was sold by Husky Energy to buyer PetroChina, two sources said.

Husky had said in February it sold its first one-million-barrel cargo of offshore Atlantic Canada crude bound for China from its White Rose field.

As MRC wrote before, Indian Oil Corporation's Rs 34,555-crore 15 million tonnes per annum Paradip Refinery was commissioned in phases from March 2015 onwards. Indian Oil Corporation is conducting feasibility studies to set up a petrochemical complex at Paradip in Odisha for Rs 20,000 crore. The petrochemical complex would be built in the vicinity of the companys to-be-commissioned 15-mln tpa greenfield refinery at Paradip. The petrochemical complex would be in addition to the already announced Rs 3,150-crore polypropylene project at the same location, the foundation stone for which was laid by MOS for petroleum and natural gas.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, neft i gazoviy kondensat, propylene, ethylene, petrochemistry, Indian Oil Corp, PetroChina, India, Canada, China.
Category:General News
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