Singapore/New Delhi: India’s Reliance Industries sold up to 210,000 tonnes of gasoline for October 2009-March 2010 lifting to Western trader Trafigura at a premium of 80 cents to Singapore’s spot quotes on a free-on-board (FOB) basis, traders said on Thursday.
Under the six-month contract, which traders said was sealed about a week ago, Trafigura will lift 30,000-35,000 tonnes of non-oxygenated gasoline a month from the refiner.
The autofuel, which contain no additives, will be produced in Reliance’s new 580,000 barrels per day (bdp) refinery in Jamnagar.
The privately run firm’s gasoline output will increase substantially soon, as it had in mid-May started a 200,000 barrels per day (bpd) fluidised catalytic cracker (FCC) at the new plant.
It also commissioned an 85,000-bpd alkylation unit in mid-August at the new plant, which is situated next to its older 660,000-bpd refinery.
“At full-tilt, the new plant produces about 30,000 tonnes of gasoline a day, and they are currently supplying quite a fair bit of their fuels to Africa and the Middle East,” said a trader.
The current Asian gasoline market is stronger versus July.
This was because recent outages in Taiwan, Indonesia and Vietnam in August had supported sentiment, but going forward, slower demand is expected from Iran, Saudi Arabia and Asia’s top gasoline importer Indonesia. The holiday driving season in the West has also ended around end-August.
“The fasting month will be over by late September. So demand in October and the rest of the fourth quarter will not be that robust,” said another trader.