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Indian refineries buy more gasoline to plug supply gaps

September 06/2019

MOSCOW (MRC) -- Indias Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd continue to import gasoline to plug a persistent supply gap as their refineries undergo maintenance and upgrade to produce cleaner fuels, reported Reuters.

BPCL on Wednesday bought 20,000 tonnes of gasoline for Sept. 16-18 arrival at Kandla at premiums of about USD4 a barrel to Singapore quotes on a cost-and-freight (C&F) basis, industry sources who track the fuel said on Thursday.

This has pushed its total purchases for cargoes scheduled for a seven-month delivery period over March to September to at least 110,000 tonnes.

HPCL has a larger appetite for the fuel, buying more than 155,000 tonnes for September and October, with its most recent purchase made on Aug. 29 from Total, the sources said.

HPCL also has an outstanding tender to buy another 30,000 tonnes for Oct. 10-12 arrival at Visakhapatnam.

HPCL had been actively seeking gasoline since December last year but results of its earlier buy tenders were not clear.

The companies did not immediately respond to requests for comment.

India remains a gasoline exporter despite the buying spree, although its net gasoline exports between January and July this year have been reduced to a monthly average of 950,000 tonnes compared with 1.11 million tonnes for the same period last year, official data showed.

Demand from India alone has been insufficient to drive the Asian gasoline market higher due to expanding refinery capacities in China, where gasoline shipments in July at 1.56 million tonnes were 75% higher than a year ago.

We remind that, as MRC informed before, India's HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021. The company has an existing 440,000 mt/year PP unit at the same site.India is short of around 0.5 million mt/year of polypropylene in 2019, according to S&P Global Analytics.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
Author:Margaret Volkova
Tags:PP, crude and gaz condensate, PP block copolymer, homopolymer PP, petrochemistry, Bharat Petroleum, HPCL, India, Russia.
Category:General News
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