New Delhi/Singapore: Mangalore Refinery and Petrochemicals Ltd (MRPL) will defer oil product shipments to buyers by about 1-2 weeks following the shutdown of its 300,000 barrels per day (bpd) plant due to a water supply shortage, traders said on Wednesday.
“There are no cancellations of its May shipments, but there will be some delays,” said a trader.
A 35,000-tonne naphtha cargo originally scheduled for May 3-5 loading from New Mangalore port to buyer Total will now be pushed back by about two weeks to the third week of May.
A 36,000-tonne jet fuel cargo initially meant for May 9-11 loading sold to BP will also be sailing out in the third week of May.
Photo: Bloomberg
Naphtha buyers had been especially concerned when MRPL shut its plant because prompt supplies had been tight due to refinery maintenance in Saudi Arabia.
Reliance Industries Ltd (RIL) had also reduced monthly volumes all through January-April because of a maintenance at its massive 290,000 barrels per day (bpd) crude unit in February.
It sold 75,000 tonnes of naphtha for May, but traders expect the privately-run refiner to emerge with more offers. Its monthly average is between 180,000 tonnes and 200,000 tonnes.
Indian Oil Corp (IOC) has also cancelled two tenders to sell up to 70,000 tonnes of naphtha for May loading.
All these reductions affected supplies.
MRPL on the hand sells up to 105,000 tonnes of naphtha a month.
“They should be able to restart the plant very soon,” said another trader.
