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Fri 13 Mar 2009, 08:08 GMT

Tight product avails in Durban


Product rationing expected following shutdown of Sapref refinery for unscheduled maintenance.

The shutdown of Durban's Sapref refinery for unscheduled maintenance is likely to lead to extremely tight product availability at the port over the next few days, according to market sources.

The 172,000 barrels-per-day facility, which is a 50:50 joint venture between Shell and BP and also produces fuel oil for the local bunker market, has reportedly halted operations until further notice. It is unclear at this stage how long the refinery will remain closed.

Refiner and bunker supplier Engen Petroleum Ltd., which operates another bunker-producing refinery in Durban - the 125,000 barrels-per-day Petronas Durban Refinery - was said to be checking its availability status yesterday afternoon, but it is expected that product avails will remain tight.

Until yesterday, Engen was said to be committed to offering for prompt avails. Product is now expected to be rationed whilst the Sapref refinery is out of action, with the possibility of there being no product avails in Durban in the near future, according to broking sources.

As a result of the expected tight availability in Durban over the next few days, an increase in demand in Cape Town and Richards Bay may lead to congestion at these ports as a consequence.

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