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Growing refining capacity in region...squeeze out product margins

Bapco predicts tough 2015, with plummeting oil prices

MANAMA, January 16, 2015

Plummeting oil prices may affect Bahrain's decision on whether to expand its only oil refinery next year, a senior oil executive said.

He also predicted that growing refining capacity in the region would also squeeze product margins, said a report in the Gulf Daily News (GDN), our sister publication.

The proposed expansion would boost the capacity of the Sitra refinery by 100,000 barrels per day, Bapco chief executive Peter Bartlett said. The refinery's existing capacity is 267,000 bpd.

"We are in FEED (Front-End Engineering Design) right now, and we will be in that stage in 2015. We will present the kingdom with a plan to proceed or not with the final investment decision in 2016," he said in Dubai.

Bartlett predicted oil product prices would weaken as crude prices continued to fall, echoing comments by Gulf-based oil products traders who see a tough 2015.

"My expectation is that ... if crude prices decline in a more rapid way then the product prices would soften," he said. - TradeArabia News Service




Tags: Oil | Bapco | price | Tough | 2015 |

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