Kuwait’s KPC Offers First Spot Fuel Cargoes Since Iran War, Sources Say
Kuwait Petroleum Corp (KPC) has offered prompt-loading fuel products on a spot basis for the first time since the start of the Iran war, four sources familiar with the matter said. This move marks a significant development in the global energy market, as it indicates a willingness by KPC to resume normal operations and supply fuel to international buyers.
Separately, KPC was offering 4 million barrels of crude via tender. The oil, which is outside the Persian Gulf, is offered to buyers in Asia, a fifth source with direct knowledge of the matter said. This development suggests that KPC is looking to diversify its customer base and expand its reach beyond traditional markets.
Fuel Cargoes Offered for June Loading
The state firm offered at least one 90,000 metric ton (670,500 barrel) cargo of 10ppm sulphur gasoil and one 55,000-60,000 ton (489,500-534,000 barrel) cargo of naphtha for June loading via private negotiations, three of the sources said. It could not immediately be determined if any deals were completed.
The force majeure declared by KPC in March for exports remains in place, the sources said. However, this latest development suggests that KPC is willing to work with buyers to find alternative solutions and resume fuel deliveries.
Buyers Have Options
Buyers have the option to either lift the fuel cargo via ship-to-ship transfers in regions outside the Strait of Hormuz such as the west coast India or Sohar in Oman, the sources said. There is also an option to load the cargo from Fujairah tanks, one of the four sources said.
In May, KPC‘s naphtha exports rebounded to more than 40,000 tons, Kpler shiptracking data showed, after cargoes were halted in March and April. Term deliveries for naphtha are expected to start in July, according to two separate sources who are KPC’s offtakers.
Diesel Exports Rebound
For diesel, KPC last sold one spot diesel cargo in January via a sales tender, Reuters’ records showed, with shiptracking data showing that exports fell to five-year lows in March and April. The recent rebound in naphtha exports suggests that KPC is looking to regain its footing in the global energy market.
Hafnia Despina Charter
The Hafnia Despina is being chartered by KPC to load around 90,000 tons of refined fuels via ship-to-ship transfer off the west coast of India on June 17-19 either to Singapore or northwest Europe, data from two shipbroking sources showed. This development highlights KPC’s efforts to adapt to changing market conditions and find new ways to deliver fuel to international buyers.
Reporting by Trixie Yap; additional reporting by Siyi Liu and Yousef Saba; editing by Jason Neely
Original Article: Kuwait’s KPC offers first spot fuel cargoes since Iran war, sources say | Reuters — Reuters