Saudi refinery eyes Europe diesel exports
Singapore, October 20, 2012
A new refinery in Saudi Arabia, that is a joint venture of Saudi Aramco and France's Total, is likely to start diesel exports from the second quarter of next year and is targeting the European market, industry sources said yesterday.
Both companies have started testing the 400,000 barrels per day refinery at Jubail, and have indicated to potential buyers that diesel exports are likely to start by the second quarter next year, they said.
Saudi Aramco Total Refinery and Petrochemicals Company has fired up the boilers at the plant, designed to reduce Saudi reliance on imports and meet rapidly rising fuel demand, sources have said.
This indicates the refinery is expected to be fully operational ahead of an earlier schedule of December next year, traders said.
Aramco and Total will jointly market the diesel, though volumes are not clear yet.
"There's no clear picture yet, but marketing from both sides will own a share of volumes," the source added.
The Jubail refinery will be the second in the Middle East to target the European market with regular diesel exports.
State-owned Abu Dhabi National Oil Company plans to offer cleaner diesel fuel for export through its 2013 term contract, making it the first Gulf producer to export ultra-low sulphur diesel outside the region on a term basis. – TradeArabia News Service