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 Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

ABS to Class the World's First CNG Ship

ABS announced it has been chosen to class the world's first compressed natural gas (CNG) carrier ordered by Pelayaran Bahtera Adhiguna, a subsidiary of Indonesia's

Prelude By the Numbers

Out at sea, look! It’s a ship! It’s a floating rig! It’s SuperFLNG! While not “faster than a speeding bullet,” Shell’s shipzilla Prelude is certainly more powerful than a speeding locomotive,

Energy

Prelude By the Numbers

Out at sea, look! It’s a ship! It’s a floating rig! It’s SuperFLNG! While not “faster than a speeding bullet,” Shell’s shipzilla Prelude is certainly more powerful than a speeding locomotive,

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Valemon Topsides Installed

On Monday, July 28, the topsides were lifted into place on the steel jacket on the Valemon field in the North Sea. Produced by Samsung Heavy Industries this is

Fuels & Lubes

Tripoli Airport Ablaze, Rockets Leave Libya in Chaos

Diplomats flee Libyan chaos; Politicians appeal for international intervention. Clashes in Tripoli, Benghazi kill around 160 over two weeks, while Libyan capital face fuel, power shortages.

Europe Sleep Walking into an Energy Crisis: Analyst

The downing of flight MA17 has prompted calls for further sanctions on Russia targeted at its energy sector. Douglas-Westwood in its 'DW Monday' analysis considers

Danish Bunker Trader Joins GAC in London

GAC Bunker Fuels says it has appointed former GAC Denmark Shipping Assistant Ida Ryberg as a Bunker Trader with its UK team. Ryberg joins Andy Boichat and Resham

News

HMS Prince of Wales Delivery Begins

A huge section of hull for HMS Prince of Wales, the second aircraft carrier being delivered to the Royal Navy, has today departed BAE Systems in Glasgow on a 600-mile

Gondan to Build Spanish Patrol Boats

Gondan Shipyard has recently signed a contract with the Guardia Civil, Spain’s Civil Guard, for the building of two patrol boats. The aluminum and fiber (PRFV ) vessels will measure 20.

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

Logistics

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

Evergreen Enhances UK and Ireland Services

Global container carrier Evergreen Line announced enhancements to its services to/from Dublin (Ireland) and Liverpool (Northwest England). From its hub in Rotterdam,

Private Buyers in Iran Look to Boost Grain Market

One sign of change in Iran as it works toward a nuclear deal with world powers is the way it is feeding itself, with private grain firms beginning a slow return

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1556 sec (6 req/sec)