Asia/Pacific News
South Korean Refiner Buys 1 Million Tonnes of 380 cSt Bunker Fuel
South Korea's Hyundai Oilbank has signed a one year agreement with Japanese trading house Mitsubishi Corporation for the purchase of around 1 million metric tonnes (mt) of 380 cSt bunker fuel starting in January, market sources have told Platts.
The deal for 80,000-90,000 mt/month is at a premium around $11/mt to Mean of Platts Singapore (MOPS) 380 CST high sulfur fuel oil assessments, CIF South Korea, and represents up to an 80 percent increase over the 30,000-50,000 mt/month it imported from Chinese oil company Sinopec in 2013.
The increase for 2014 was said to be due to plans to cut fuel oil production at its Daesan facility, which will now receive 20,000-30,000 mt/month, with Hyundai Oilbank's Ulsan terminal receiving the remaining 60,000 mt/month.
According to a company source, Hyundai Oilbank plans to start operations at its Ulsan terminal in January, with a market source saying it plans to send bunker fuel directly to its Busan terminal rather than deliver bunker fuel directly to vessels.
