BelOil plans to increase diesel fuel supplies to Ukraine under long-term contracts by 8.5% to 2.1m tonnes in 2021
<p> MINSK, Dec 18 - PrimePress. Belarusian Oil Company (BelOil, designated exporter of Belarusian oil products) plans to increase supplies of diesel fuel to Ukraine by 8.5% year on year up to 2.1 million tonnes under long-term contracts in 2021, BelOil Ukraine Director General Evgeniy Pospelov said at the international conference Petroleum Ukraine on December 17, as reported by encorr. </p> <p> </p> <p> Pospelov noted that the company has finished contracting the planned Ukraine-bound volumes of gasoline and diesel fuel under long-term contracts for 2021. According to him, "the company has sold all the diesel fuel under long-term contracts, increasing both volumes and price. </p> <p> </p> <p> As a result, monthly supplies of diesel fuel in 2021 will increase up to 200 thousand tons or up to 2.1 million tons in 2021, which is 8.5% more than in 2020. </p> <p> </p> <p> “With gasoline the situation is the same (+2.2%, to 40,000 tonnes per month), the only thing is that A-92 grade gasoline has slipped in terms of volumes (minus 1.2%, to 16,000 tonnes per month). This is due to the fact that local producers are increasing their production, and it is harder for us to import it,” Pospelov said. </p> <p> </p> <p> As previously reported, the volume of BelOil’s term contracts for Ukraine in 2020 was about 180 thousand tons of diesel fuel and 50 thousand tons of gasoline a month. </p> <p> </p> <p> As market players say, BelOil managed to raise prices for term contracts for all categories of customers. The largest contractors, OKKO, UPG, WOG and Naftogaz Oil Trading, signed a one-year contract for diesel fuel with a premium of $20 per 1 ton under the FCA Mozyr terms (+1-2 dollars to the level of the 2019 premium). </p> <p> </p> <p> The terms of supply take into account the rise in oil prices for Belarusian refiners due to the tax manoeuvre in Russia. </p> <p> </p> <p> According to market players, the volume of term contracts for supplies of Belarusian gasoline in 2021 has slightly decreased year on year, which is primarily due to growing production volumes at Ukrainian refineries. For example, Ukrtatnafta plans to increase its refining capacity from 3.1m tonnes in 2020 to 4.5m tonnes in 2021. </p> <p> </p> <p> One of the trends of the 2021 contracting season is the term contract portfolio gets fully abandoned or sized down in favor of purchases on the spot market. </p> <p> </p> <p> Belarusian Oil Company (BelOil) was established in May 2007. Shareholders: Belorusneft (Gomel) - 52%, Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast) - 24% each. BelOil exports oil products produced by its shareholders, as well as purchases and refines oil at Belarusian refineries and facilitates freight forwarding deliveries. It has subsidiaries in Poland, Latvia, the UK, Russia and Ukraine. End </p>
2020-12-19
Primepress
MINSK, Dec 18 - PrimePress. Belarusian Oil Company (BelOil, designated exporter of Belarusian oil products) plans to increase supplies of diesel fuel to Ukraine by 8.5% year on year up to 2.1 million tonnes under long-term contracts in 2021, BelOil Ukraine Director General Evgeniy Pospelov said at the international conference Petroleum Ukraine on December 17, as reported by encorr.
Pospelov noted that the company has finished contracting the planned Ukraine-bound volumes of gasoline and diesel fuel under long-term contracts for 2021. According to him, "the company has sold all the diesel fuel under long-term contracts, increasing both volumes and price.
As a result, monthly supplies of diesel fuel in 2021 will increase up to 200 thousand tons or up to 2.1 million tons in 2021, which is 8.5% more than in 2020.
“With gasoline the situation is the same (+2.2%, to 40,000 tonnes per month), the only thing is that A-92 grade gasoline has slipped in terms of volumes (minus 1.2%, to 16,000 tonnes per month). This is due to the fact that local producers are increasing their production, and it is harder for us to import it,” Pospelov said.
As previously reported, the volume of BelOil’s term contracts for Ukraine in 2020 was about 180 thousand tons of diesel fuel and 50 thousand tons of gasoline a month.
As market players say, BelOil managed to raise prices for term contracts for all categories of customers. The largest contractors, OKKO, UPG, WOG and Naftogaz Oil Trading, signed a one-year contract for diesel fuel with a premium of $20 per 1 ton under the FCA Mozyr terms (+1-2 dollars to the level of the 2019 premium).
The terms of supply take into account the rise in oil prices for Belarusian refiners due to the tax manoeuvre in Russia.
According to market players, the volume of term contracts for supplies of Belarusian gasoline in 2021 has slightly decreased year on year, which is primarily due to growing production volumes at Ukrainian refineries. For example, Ukrtatnafta plans to increase its refining capacity from 3.1m tonnes in 2020 to 4.5m tonnes in 2021.
One of the trends of the 2021 contracting season is the term contract portfolio gets fully abandoned or sized down in favor of purchases on the spot market.
Belarusian Oil Company (BelOil) was established in May 2007. Shareholders: Belorusneft (Gomel) - 52%, Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast) - 24% each. BelOil exports oil products produced by its shareholders, as well as purchases and refines oil at Belarusian refineries and facilitates freight forwarding deliveries. It has subsidiaries in Poland, Latvia, the UK, Russia and Ukraine. End