BPCL to export light diesel oil in rare move, industry sources say | Reuters

BPCL to export light diesel oil in rare move, industry sources say
| Reuters

By Jessica Jaganathan

SINGAPORE Bharat Petroleum Corp Ltd will export a 35,000-tonne light diesel oil cargo from Kochi in southern India in a rare move, industry sources said on Tuesday. The state-owned refiner sold the cargo, which has a sulphur content of 1.5 percent, to Vitol, the sources added. Shipping data on Thomson Reuters Eikon shows the 'Teatrainy Bridge' is currently anchored at Cochin port and is expected to load a diesel cargo this week and head to Fujairah.

This is likely the first time BPCL has exported such a cargo and it was sold through a tender, one of the sources close to the matter said. It can ship a couple of more cargoes but these exports will stop once a diesel-producing secondary unit at the Kochi refinery starts in January or February, the source added. The unit is part of the second phase of the Kochi refinery expansion. BPCL is expanding the refinery's capacity to about 300,000 barrels per day (bpd) from 190,000 bpd.

The expansion was expected to be completed by October, but has been delayed to early 2017, the source added.

Light diesel oil is a blend of gasoil and residual fuel and is often used as marine fuel or in industrial equipment. (Reporting by Jessica Jaganathan; Editing by Himani Sarkar)

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Updated Date: Nov 22, 2016 15:52:17 IST

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