Repsol to Test Canadian Blend Crude at its Spain Refineries

Posted by Eric Haun
Wednesday, May 14, 2014

Repsol will test the first batches of Canadian crude at its Spanish refineries later this month as the oil major takes advantage of a provision that allows Canadian crude to be re-exported through U.S. ports, said a source with knowledge of the deal.

Repsol has bought a cargo of Western Canada Select (WCS) heavy blend crude that will arrive in the European country at the end of May to be used as a test for several refineries, the source said.

"The 600,000 barrels of WCS were loaded at Freeport (Texas) after obtaining the license to export them from the United States. Mexican Maya was also loaded to optimize the freight," the source added.

To export Canadian crudes from the United States such as the WCS, a heavy sour blend with 20 API degrees made of more than a dozen Canadian crudes, the seller needs to ask to the U.S. Department of Commerce for a license for every cargo. The export of U.S. crudes, however, is banned in almost all cases.

Repsol was not available to comment.

The company has been increasing purchases of heavy crudes, primarily Latin American grades, through supply contracts with Venezuela's PDVSA for Morichal 16, Colombia's Ecopetrol for Castilla and Mexico's PEMEX for Maya crude.

After being chartered by Repsol, the Suezmax oil tanker Aleksey Kosygin was on Wednesday going out from the U.S. Gulf Coast and it is scheduled to arrive to Bilbao, Spain, on May 29, according to Reuters vessel tracking data.

The company plans to keep buying this crude type if the tests are successful, the source added.

Repsol owns five industrial and refining complexes in Spain with a joint capacity of 896,000 barrels per day. It also operates the 102,000-bpd La Pampilla refinery in Peru.

The agreed price and seller were not disclosed.

"The WCS is a good quality crude. It is at the same level than Colombian or Venezuela heavy grades," the source said.

PDVSA has scheduled two 600,000-barrel deliveries of Morichal 16 crude for Repsol's refineries La Coruna and Cartagena in Spain, according to the Venezuelan state-run company's exports plan.

U.S. oil producers are not allowed to export domestic crude overseas, but refining firms are increasing sales of finished products and most exploration and production companies favor lifting the export ban that was introduced in 1973 in reaction to the Arab oil embargo.

(Reporting by Marianna Parraga; Editing by Terry Wade and Lisa Shumaker)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

CMA CGM Rolls out Bengal Bay Express

CMA CGM has introduced its new Bengal Bay Express service, operated with 11 vessels of 6,500 TEU on a weekly basis, in a continuous effort to provide its customers with the best quality service.

Container-on-barge Returns to Baton Rouge

Container-on-barge services have returned to the Port of Greater Baton Rouge to provide the petrochemical industry with another option to move its products.   Operated by SEACOR AMH,

Energy

US Oil Drillers Add Rigs for 5th Week in a Row

U.S. drillers this week added oil rigs for a fifth consecutive week, Baker Hughes Inc said on Friday, but the oilfield services provider and some analysts cast

Daewoo Shipbuilding: $1.4 bln order Cancelled

Cancelled order part of Statoil's Bressay project. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Friday said a 1.58 trillion won ($1.41 billion)

Asia Tankers-VLCC Rates Falter on Oil, Tanker Supplies

MidEast, West Africa rates hit 11-month low. Freight rates for very large crude carriers (VLCCs), which hit an 11-month low this week, could slide further next

Fuels & Lubes

Insights: Kunkel Weighs in on Propulsion Technology

LNG? Methanol as fuel? Hybrid systems? Tier 4? Reducing noise? Cutting emissions without crushing fuel economy? Marine News readers have questions and Bob Kunkel has answers.

LNG-fueled Bulker Ordered from Korea

Hyundai Mipo Dockyard (HMD) has signed a contract to build a 50,000 dwt bulk carrier with ILSHIN LOGISTICS. The project is a collaboration between POSCO and ILSHIN

Gulf Petrochem Group Expands European Bunker Operations

Gulf Petrochem Group, the UAE based global bunker supplier, has announced that it is now officially offering physical bunker supply in the port of Rotterdam, out of its new office based in Dordrecht.

News

Global Maritime Introduces New DP Policies & Procedures

Global Maritime Consultancy & Engineering has introduced a new set of policies and procedures to support its Dynamic Positioning (DP) activities. The new procedures

Daewoo Shipbuilding: $1.4 bln order Cancelled

Cancelled order part of Statoil's Bressay project. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Friday said a 1.58 trillion won ($1.41 billion)

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

Logistics

Asia Tankers-VLCC Rates Falter on Oil, Tanker Supplies

MidEast, West Africa rates hit 11-month low. Freight rates for very large crude carriers (VLCCs), which hit an 11-month low this week, could slide further next

Asia-N.Europe Box Rates Jump 58 pct

Freight rates for shipping containers from ports in Asia to Northern Europe jumped 58 percent to $1,125 per 20-foot container (TEU) in the week ending Friday, a

LNG Market Needs More Vessels than Currently on Order

Despite the current weakness in LNG shipping rates, Drewry maintains its bullish long-term outlook for LNG shipping and believes that the market will require more

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
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: 0.1132 sec (9 req/sec)