India Reliance sells total 540,000T term gasoline

July 16, 2008 · Filed Under Reliance Industries 
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India’s Reliance Industries sold a total 540,000 tonnes of term gasoline supplies for the second half to two buyers at discount levels, adding to an already well-supplied Asian market, traders said on Wednesday.
The deals were sealed ahead of its upcoming 580,000 barrels per day (bpd) refinery in Jamnagar, prompting some traders to say the Indian giant may be looking to secure buyers to take up as much of its current output before new supplies flow out.

Reliance, which now runs a 660,000-bpd refinery at Jamnagar in India’s western Gujarat state, also exports up to 240,000 tonnes of spot gasoline a month, traders said.
“I don’t think Reliance will cut back on its spot volume even after these term deals,” said a Singapore-based trader.
With the term barrels, Reliance’s monthly shipments average at 360,000 tonnes, fast catching up with Asia’s current top gasoline exporters, Taiwan’s Formosa and CPC, ahead of the full start-up of its refinery later this year that could eventually make it a global leader capable of redrawing world trade routes.
These additional supplies come at a time of slowing demand in Europe, where motorists are turning to using more ultra low-sulphur diesel, and the United States where demand is being hit by high pump prices while stocks are ample.
In its latest term transaction, Reliance sold a total 360,000 tonnes of gasoline to an oil major for July-December lifting, or 60,000-tonnes a month during the six-month period.

Each parcel comprises 30,000 tonnes each of 90-octane and 95-octane gasoline. The deal was sealed at a discount to Singapore spot quotes, free on board (FOB) basis, though actual prices were not immediately known.
“If it is based on Singapore spot quotes, the deal is definitely done at a discount,” he said.
Some of the 360,000-tonne supplies, traders said, will likely come from the export-oriented refinery, built by unit Reliance Petroleum and is due to come onstream by September, which will make the whole refining complex the world’s biggest.
The new plant can produce 8-10 million tonnes of gasoline a year.
RELIANCE ON A ROLL
Reliance earlier concluded another term deal to supply 180,000 tonnes of gasoline to Glencore for July-September lifting at around $2.00 a barrel discount to Singapore spot quotes, on an FOB basis.
Under this contract, Glencore has the option to lift either 60,000 tonnes a month of 90-octane, or 95-octane for the three-month period. Both deals were done via private negotiations.

Source: guardian.co.uk

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    One Response to “India Reliance sells total 540,000T term gasoline”

    1. sandeep koli on November 7th, 2008 12:28 pm

      i want open gas pump in car. in barshicity dist.solapur so help me

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