Asia/Pacific News
GS Caltex to Sell 500 cSt in South Korea
South Korean refiner GS Caltex will begin supplying 500 cSt bunker fuel on May 23, becoming the second refiner in the country to do so, Platts reports.
SK Energy began supplying the fuel early last month, shipping fuel from its Ulsan refinery.
Local players have said the grade is priced "around $5" per metric tonne (pmt) below 380 cSt bunker fuel, while Platts indicated the discount is as much as $8.00 pmt.
GS Caltex had planned to start delivery of the 500 cSt fuel May 1, but it took longer than expected to prepare for the supply, a source told Platts.
The company will produce and ship the new grade from its 775,000-barrel-per-day (bpd) facility at Yeosu, delivering to Busan and Yeosu.
Two other South Korean refiners, S-Oil and Hyundai Oilbank, are currently not offering the 500 cSt grade.
China Marine Bunker (PetroChina) Co (Chimbusco) said earlier this year that it was aiming to be the first supplier of bonded 500 cSt fuel in northern Chinese ports, and sources said demand for the fuel was growing in China partly because the price difference between 380 cSt and 500 cSt was widening.
