Wed 15 Jun 2011 13:23

Utility buys 210KT of fuel oil


Volumes are said to be the largest the company has purchased in at least five years.



Tenaga Nasional, the largest electric utility company in Malaysia, has purchased approximately 210,000 tonnes of fuel oil for delivery between April and August, Reuters reports.

The fuel oil volumes, which represent the largest the company has bought in at least five years, are linked to natural gas supply disruptions that resulted from the shutdown of gas production platforms owned by state oil firm Petronas.

The utility normally purchases in batches of around 15,000 tonnes. However, earlier this week it bought three low-density (0.98) 180-centistoke (cst) parcels, totalling 65,000 tonnes, for delivery in August on a cost and freight (C&F) Malaysia basis.

Two of the cargoes, of 20,000 tonnes and 30,000 tonnes, are for delivery to Kapar - a town in the Klang district of Selangor - at the beginning and in the middle of August respectively.

The third of the lots, totalling 15,000 tonnes, is for delivery on August 1-3 to the Sultan Iskandar Power Station in Pasir Gudang - a port located east of Johor Bahru in southern Malaysia.

Tenaga had also purchased five similar cargoes totalling approximately 145,000 tonnes from independent energy trader Mercuria and oil major Shell for delivery in the second quarter. The order included six lots of 16,000-17,000 tonnes each and three parcels of 15,000 tonnes each.

It is thought that Tengaga's buying spree may not be for much longer as the utility reduced the volume of its requirements in the tender for the August-delivery parcels. The company was initially looking to buy seven cargoes totalling 115,000 tonnes, for delivery in July and August, instead of the three parcels that it will buy, thus reducing its order by 50,000 tonnes.


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