SATORP loads 2nd diesel cargo

SINGAPORE: Saudi Aramco Total Refining and Petrochemical Company (SATORP) has loaded its second diesel cargo from its new Jubail refinery, industry sources said on Wednesday.
The cargo from the 400,000-barrels-per-day Jubail refinery is expected to remain within Saudi Arabia, they added.
The new refinery — a joint venture by France's Total and Saudi Aramco — is expected to reach full capacity by the end of this year and will help feed rising domestic demand, cutting the country's dependence on fuel imports.
Saudi Aramco loaded the refinery's second diesel cargo in early November, which will be for its own use, one of the sources close to the matter said.
The exact sulfur specification of the cargo could not be confirmed, but it is probably diesel with 3 parts-per-million (ppm) sulfur, similar to the first cargo shipped from the refinery, traders said.
"The sulfur content is low as the refinery is processing Arab Light crude now," a Gulf-based trader said. The refinery is designed to eventually process Arab Heavy crude, with diesel cargoes likely to be of 10 ppm sulfur, traders have said.
Total loaded the first diesel cargo from the refinery in October, instead of September as initially expected due to "teething issues" in starting up the refinery, traders added.
The first diesel cargo headed to East Africa, they said.
"The cold properties in the cargo probably didn't match Europe specs so even though the sulfur content was low, they had to ship it to Africa," a second Gulf-based trader said, though this could not be confirmed with Total.
Saudi Aramco has however still not sold a jet fuel cargo it was offering from the new refinery, a second source close to the matter said.
Apart from diesel, the refinery has so far sold a fuel oil cargo that loaded in late September and a naphtha cargo which loaded in late-October.
Traders are also keeping an eye on Saudi Aramco's term imports. Lower overseas purchases for next year could have a significant impact on term premiums being negotiated.
Saudi Aramco has a term contract to lift unspecified volumes from India's Reliance and from Gulf refiners, traders said.
The firm has not decided if it will finalize a term contract for next year to import diesel or look to the spot market to meet domestic demand, the first source close to the matter said.
Aramco relies heavily on imported diesel in summer when demand for electricity peaks with rising use of air-conditioning as temperatures can soar to a grilling 50 degrees Celsius.