MOSCOW (MRC) -- Ecuador's state-owned oil company Petroecuador has awarded a contract to commodity trader Trafigura for exporting fuel oil, the volume of which will depend on how much it refines each year, reported Reuters.
The 25-mos contract will include the delivery of between 30% and 50% of the annual production of fuel oil, mostly used in power generation, in the Esmeraldas refinery, Ecuador's largest, which has a capacity to refine 110,000 bbl of crude per day.
Trafigura was the only company of 36 invited to bid on the contract that presented an economically viable offer, with a premium of 41 cents per bbl, Petroecuador said in a statement.
"In opening this bid we considered the minimal storage capacity of fuel oil number six at the Esmeraldas refinery," the company said.
"Continuously exporting shipments of this product will allow operation of the plant to be constant and not paused due to lack of storage."
Esmeraldas produced 12.1 MM bbl of fuel oil between January and October this year.
The plant resumed full operating capacity in September. Output was limited following severe damage to the refinery's fluid catalytic cracking unit due to a failure in Ecuador's electricity grid.
As MRC informed earlier, Trafigura is preparing to sell its 24.5% indirect stake in an Indian oil refining joint venture with Russia's Rosneft to an Italian group. Trafigura holds the stake in Nayara Energy, which owns India's third largest refinery, a port and a network of more than 6,000 fuel stations across India, indirectly through a 49.84% holding in Singapore-based Tendril Ventures Pte Ltd.
We remind that India's Nayara Energy hopes to operate its 400,000 barrels per day (bpd) refinery in western India at close to 100% capacity in 2021 as fuel demand is picking up.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC