Singapore: Reliance Industries Ltd (RIL) has finalized its 2013 term contracts to supply gasoil and jet fuel to several buyers and is negotiating with a few more, all at levels higher than those of most other refiners, industry sources said.
It has completed a 500 ppm (parts per million) sulphur gasoil contract with at least one buyer at premiums close to $2.70 a barrel to the new benchmark Middle East quotes and a 10 ppm sulphur diesel contract at premiums of about $4.30 to $4.50 a barrel, the sources said on Wednesday.
The gasoil cargoes will be priced off the 500 ppm sulphur gasoil quotes instead of the current 5,000 ppm, in line with a shift in benchmark by pricing agency Platts, which comes into effect in January.
For jet fuel, the Indian refiner has concluded its 2013 term contracts at premiums of about $2.40 to $2.50 a barrel, the sources said.
Details on exact volumes and buyers were not immediately available.
The refiner is likely to continue negotiations with several other companies, especially for the 500 ppm sulphur gasoil, traders said.