Cargill To Deliver Low Sulfur Cargo

Friday, June 09, 2000
Cargill Inc. is in the process of shipping the first low-sulfur gas oil or diesel cargo from Southeast Asia to Europe. Traders said the company had chartered a tanker called the Young Lady, which is on its maiden clean products voyage, to lift a total of 680,000 barrels of gas oil from the Malacca II refinery in June.

The Malaysian refinery is the only major refinery in Southeast Asia that can produce high-quality diesel that meets tight United States CARB and European EN590 specifications, traders said. They said the rare opportunity to export gas oil to Europe emerged because of multiple factors, including cheaper freight, closed arbitrage to the United States and low prices in the benchmark Singapore market. The price of standard 0.5 percent-sulfur gas oil in Singapore was hovering at $29.50 per barrel compared with July futures on the International Petroleum Exchange at $225 per ton, or $30 per barrel.

"The arb to Europe is not really open but because they (Cargill) managed to get such cheap freight, they are able to do it. They also got the cargoes at low premiums," a gas oil trader said. Cargill officials could not be reached for comment.

Traders said Cargill had purchased a total of 440,000 barrels of diesel that met the U.S. CARB standard and 240,000 barrels of 0.05 percent-sulfur gas oil.


People & Company News

MN100: Viega LLC

The Company: Viega was founded in Germany in 1899. By 1901, the company began to manufacture home plumbing products, growing and expanding internationally. In 1999,

Abu Dhabi Ship Building Commissions First Floating Dock

Abu Dhabi Ship Building PJSC (ADSB) has commissioned its first floating drydock located in Mina Zayed as the company looks to expand its commercial service offering.

MN100: Glosten

The Company: Glosten is an employee-owned full-service consulting firm of naval architects, marine engineers, electrical engineers, and ocean engineers. Founded in 1958,

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0746 sec (13 req/sec)